tag:blogger.com,1999:blog-20374666.post6116118549307476391..comments2024-03-05T07:50:04.017-05:00Comments on Stockbee: To buy or not to buy breakoutsPradeep Bondehttp://www.blogger.com/profile/16750002566366368685noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-20374666.post-27597182428497897552007-04-26T13:13:00.000-04:002007-04-26T13:13:00.000-04:00First gap at the beginning of move is breakaway ga...First gap at the beginning of move is breakaway gap. In retrospect if it does not get filled.<BR/><BR/>Subsequent gaps are runway gaps.<BR/><BR/>A gap at the end of move is called exhaustion gap. Again, it is runway till subsequent action proves it to be exhaustion gap.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-3443792120781999752007-04-26T12:44:00.000-04:002007-04-26T12:44:00.000-04:00how do you identify a runaway gap versus a breakaw...how do you identify a runaway gap versus a breakaway, exhaustion gap? apologies for so many question, been looking at gaps for >months and find it hard to recognise which is a profitable one and which is not. you insight would be appreicate it.Susanhttps://www.blogger.com/profile/01946744835561258953noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-15697130838348720342007-04-26T07:03:00.000-04:002007-04-26T07:03:00.000-04:00SusanMy observations are based on primarily 100% p...Susan<BR/>My observations are based on primarily 100% plus list and IBD 200.<BR/><BR/>As I have said there is nothing wrong with buying retracements or breakouts. Traders personal psychology and deeply held beliefs determine what they will be more comfortable trading.<BR/><BR/>Stocks with higher relative strength and in runaway mode do not offer very profitable retracement entries based on my experience and research.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-54512330561759918102007-04-26T02:27:00.000-04:002007-04-26T02:27:00.000-04:00Does this buy breakout also has to satisfy your ru...Does this buy breakout also has to satisfy your rules such as "growth in 260 days" etc?<BR/>I was looking random stock broke out recently to test the theory. eg: IPII, broke out 3 time recently and if you bought on the 2nd day after breakout, it retraceback and might get stoppedout. same as AVNR, broke out with large volumn, closed at top of range, if bought on 2nd day, it would be a losing trade. MNTA seems to be good if bought on 2nd day, but it didnt have much volumn surge. What criteria would you be looking at when buying break out stocks the 2nd day? thanksSusanhttps://www.blogger.com/profile/01946744835561258953noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-55281463660692573962007-04-26T01:17:00.000-04:002007-04-26T01:17:00.000-04:00I look for retracements on a weekly basis. One red...I look for retracements on a weekly basis. One red candle on the weekly chart is all that you get sometimes. Check your favorite breakout stock for this pattern.StockRakehttps://www.blogger.com/profile/12101022536220993070noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-46827467006651544972007-04-25T15:02:00.000-04:002007-04-25T15:02:00.000-04:00Yes. But I am looking at holding this for longer p...Yes. But I am looking at holding this for longer period till I get stopped out. Not looking at just next day move.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-389136496115160762007-04-25T14:48:00.000-04:002007-04-25T14:48:00.000-04:00in previous post, you mentioned buying more if it ...in previous post, you mentioned buying more if it closes at top of range... that's because you have observed that when breakout closes at top of range, the next day is pretty much always positive, gap up, etc.?walterhttps://www.blogger.com/profile/17470446666411384334noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-71892837469930587192007-04-25T14:00:00.000-04:002007-04-25T14:00:00.000-04:00gotcha - thanksgotcha - thankswalterhttps://www.blogger.com/profile/17470446666411384334noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-67794322914726024472007-04-25T13:57:00.000-04:002007-04-25T13:57:00.000-04:00A breakout might have first retracement after 50% ...A breakout might have first retracement after 50% move and if you buy that retracement the next move might be just 10%. So waiting for retracement will ensure missing on the major opportunity.<BR/>Breakouts, I am talking about are on IBD200 or 100%. Breakouts on other stocks may or may not retrace. high momentum stocks behave differently. High float and large cap behave differently. Large float stocks tend to retrace more often.Pradeep Bondehttps://www.blogger.com/profile/16750002566366368685noreply@blogger.comtag:blogger.com,1999:blog-20374666.post-20713269255388795702007-04-25T13:37:00.000-04:002007-04-25T13:37:00.000-04:00yeah, but dont you find that most breakouts retrac...yeah, but dont you find that most breakouts retrace, at least somewhat?<BR/><BR/>what if you buy a breakout after it has retraced?<BR/><BR/>i am a little confused about the fundamental difference...walterhttps://www.blogger.com/profile/17470446666411384334noreply@blogger.com