A high volume breakout after a pullback

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A high volume breakout after a pullback

September 28, 2009

Pradeep Bonde

RODM: Rodman and Renshaw Capital Group Inc.

A very common pattern in high momentum stocks is a high volume breakout after a pullback. It is easy to scan for such stocks in Telechart. Essentially you need to build two conditions:

a pullback condition and
a high volume breakout condition

2 comments:

Dave said...: Pradeep,

What kind of pullback is necessary to trigger this breakout? How do you know from Telechart that the pullback is all over and breakout is bound to happen? What will happen next after the breakout? Another pullback possible?

Thanks a lot.; Sep 28, 2009, 6:44:00 PM
Pradeep Bonde said...: What kind of pullback is necessary to trigger this breakout?
Based on % change in last 10 days before breakout days.
How do you know from Telechart that the pullback is all over and breakout is bound to happen?
By running a scan.
What will happen next after the breakout? Another pullback possible?
Stock has probability of going up. A probability of another pullback also exists. But one plays for the probability of it going up.
The position is already profitable as it was entered during the day.; Sep 28, 2009, 7:28:00 PM

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