Potential & Breakout trading--Technical tips and tricks

[toocool]

Hi,

I made my first technical analysis trade (well... of my own analysis anyway) on SSM the other day in at 60c.

Any thoughts from you guys on the trade/chart would be great to see if im getting the grasp.

I guess its a ascending triangle on declining volume... basically...

 

[tech/a]

Hi T/C

I think its pretty good as a potential.
Its seem a strong gap and volume to resistance.
From here the next few bars will tell.

Click to expand

 

[tech/a]

I've been asked by a few how I exit my discretionary trades.
As I trade breakouts I thought I would include it in this thread as I use both exits and time stops which are based around technical price and volume action.
Not only to exit but also a pre screening to select a stock for trading (as there are far too many breakouts to trade all of them.)

But also to monitor or manage a trade.
Why stay in a trade during a pull back?
Why sell a trade before its stop is hit?
Why add to a trade during an up move/consolidation/correction?

While I Dont profess to get it perfectly correct every time---I Dont----There is always the continued management of a portfolio both during a trade and often monitoring those trades that have been closed for re entry if the situation arises.

There are quite a few situations and as time permits Ill post them up with charts.
Here is the first and NUMBER 1 exit set-up!
Click to expand.



I welcome comments and hope this is helpful to fellow traders.

 

[tech/a]

The second non negotiable exit is the Lower High Lower low swing exit.

Those of you who follow Brent Penfold my see a similarity in his thinking and my own.
See if eventually you can pick it.
I didn't know of his "thinking" until I read his book "Universal Principals of Successful Trading".I certainly didn't know of him when I designed TechTrader.

Click To expand

 

[explod]

Top thread and well done T/a

Another who uses pivot points is Daryle Morley, a trader of nearly 50 years. Has a column in the Herald Sun on Wednesday's business section. Have attended one of his seminars.

Have no connection to him but what I have learned has been invaluable to me. Worth a look in my view, you can never have enough angles in this caper.

Can check him on daytrader.com

 

[tech/a]

Here is an example of a trade I WOULDN'T take in a scan
and one I would. This generally sorts the trees from the forest.

Click to expand

 

[Boggo]

My Turtle breakout system would have me long on both of those tech/a.

I only scan the S&P ASX300 so I wouldn't have found them though.

(click to expand)

 

[Boggo]

Any views on this tech/a, would you enter or would you increase your holding if you already held ?

(click to expand)

 

[tech/a]

Its one I would classify as 5-6/10.
It appears to be selling pressure and would need to see a clear breach of resistance to buy or add.
If I was in the stock Id be seriously looking at taking a profit on any turn down from here.
Not because I think it could reverse but I feel it would be inclined to range. So better prospects elsewhere.

 

[Boggo]

Nice work tech/a, your first chart pick is stalled and your preferred pick is up 14%.

Mine is up 8% with a bit of 'we love what the chinese love' sentiment driving it.

 

[tech/a]

Nice work tech/a, your first chart pick is stalled and your preferred pick is up 14%.

Mine is up 8% with a bit of 'we love what the chinese love' sentiment driving it.

The pattern is very similar to PNA.
I know its not yet I have PNA!

 

[Boggo]

The pattern is very similar to PNA.
I know its not yet I have PNA!

LYC

 

[tech/a]

SAVING OPEN PROFIT

We have all been there this is what I do with trades which have flown!!
I can always re enter.
I often do but find its wise to get out earlier than later.The key is to identify stocks rising exponentially.


This is one I'm trading UNX
Click to expand.

 

[Boggo]

I use an ATR formula for the red line and I apply a hit and run approach to these type of trades, ie buy, trail, exit and move on. You can easily give back 50% of your profit on this type of run up if you don't stay on its tail.

My below on UNX chart.

PS. I just noticed a typing error on the chart, the stop would be set at 0.635, not 0.625.

(click to expand)

 

[tech/a]

If you have a look at JMS
You'll see where I sold and why I bought back in with less risk.
Ill post a chart after a swim in the sea.
Its damned hot!

 

[tech/a]

Re ENTRY or HOLDING AFTER A PULLBACK

I think this is one of the most important aspects of any form of trading---when your in a trade you want to know if its wise to hold and if the trend is likely to resume OR you've sold out on a trailing stop and the reversal stalls---Should I buy back in and How?

This is what I do.
Click to expand.

 

[tech/a]

If there is one thing I know with absolute certainty.
Stocks which rise vertically wont continue to for very long.
LEG was one of those This morning I trailed a stop .005 behind it until it folded back on me at .93c---great end to 2010

Click to expand---sorry about the indulgence!

 

[tech/a]

Further to the UNX example above.
Topping off a nice year.

Just one thing Id like to pass on to those trading breakouts.

When profit is there take it Dont watch it dissolve or worse turn into loss.
If it turns out to be premature then you will be able to re enter,provided you have a re entry strategy.

Click to expand

 

[Boggo]

Nicely done tech/a.

I am hoping that the next six months will be as good as the last. It has taken a bit more hands on work than normal but obviously that is what is required.
The main winning factor has been not tolerating anything that is not making a profit, just in the ASX 300 there are new opportunities everyday.

Stopped out of EHL today at 1.08, have had a few good runs on it in the past but if it ain't going up its out.
WTP is a couple of cents from its exit, CGG has been on the border for a while now but it had a little run up today.

(click to expand)

 

[tech/a]

The main winning factor has been not tolerating anything that is not making a profit,

This is a very wise realisation one that will keep you involved in placing yourself CONSTANTLY in front of new opportunities (The TRAINS) and every now and then one or more will take off and take you with it!

Constantly monitoring your portfolio will see non performers cut.
Trades exited BEFORE their Stop is hit! (I rarely see a stock hit its stop If it doesn't launch in a few days I Dont want it around so will exit well before stop!) Sure I get it wrong but when I do it WILL turn up again in my scans!

I've posted shots of my portfolio a few times and do again here.

My hope is that there are some who can see the trade management which is constantly being administered to the portfolio forever working on maximising expectancy. small losses and good sized profits.



Have a great New Year fellow breakout traders!