Exits are inherent to setups Part2 | stockbee

12/02/2010

Exits are inherent to setups Part2

Everyday I get emails from members and non members saying they are struggling with exit. In reality most are struggling with a setup concept.
What most do is they take a buy entry idea from say Stockbee then try and marry ATR exit with it from Kirkreport or from someone else. In the process they no more have a setup.
You can not mix and match setup ideas like that.
Volatility Based Setups
Volatility Based Setups buy and exit based on ATR signals. Charles Kirk trades a volatility based breakout method.
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Setup logic= Volatility Breakout
Setup Entry= Price crosses above ATR
Setup Exit= Price crosses below ATR
If your religion is Volatility breakout your entry and exit logic has to be based on volatility.

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