Re: Technical Trading Exercise---Discretionary, (Pavilion103 & tech/a)
Tech/Pav
When you scan for breakouts, what is your thoughts behind them in regards to the number of days for a new breakout. What is your shortest and longest scan?
I was thinking a longer breakout scan would probably have a big pattern under the breakout price indicating a possible big price move upward so if you can get a small low risk trade just above breakout level, excellent.
Is this what you look for after a breakout appears in your scans, a larger pattern under breakout level?
Am I on the right line of thinking?
No not really.
I dont want breakouts I want potential breakouts.
Among other things which are NOT breakout related.
I havent any of this sort up yet but will explain when they are.
I have criteria I scan.
Being an alert of various breakouts 5 days ago.
Along with a liquidity filter.
I have 4 codes which give me many prospects.
From there I then use the
discretionary filters IE Visual filters.
These are in general terms.
The trade must be in an obvious trend or an obviously emerging trend.
There must be a clear and tight micro pattern (generally).
There must be signs of momentum gathering or in place.
There must be signs in the pattern that demand is not being swamped by supply.
Or a clear lack of supply.
I must be able to get a very tight risk parameter.
I also have a look for any clear Elliott count.