What to look for in a good swing breakout
First leg should be linear
Not up 3 days in a row
Orderly consolidation /pullback pre breakout
No 4% breakdowns in consolidation/pullback
Day prior to breakout is either negative day or narrow range day
Closes near high
These are the criterias used to select candidates from 4% b/o and $ b/o scans.
XONE : First up leg linear . Breakout today (4b/o). Not up 3 days in a row. Closed near high.
RDNT : First up leg linear . Breakout today (4b/o). Not up 3 days in a row. Closed near high.
GOOS BRC ADTN other good setups
If you want to make money swing trading develop these scans and you will find good setups daily.
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9 comments:
do you wait for end of day to see if close near high and then enter the trade or do you wait for tomorrow after you saw the breakout pattern? thanks.
do you wait for end of day to see if close near high and then enter the trade or do you wait for tomorrow after you saw the breakout pattern? thanks.
buy as soon as it shows up in scan or in many cases anticipate and enter before breakout.
Hi Pradeep
Follow up to above question how do you select the best stock to buy with above b/o? Typically there is several stocks and money is limited
Thank you
the one with highest trend intensity is first choice
Hi Pradeep
What indicator do you use to determine the trend intensity?
ti65 which is ratio of avg7/avgc65
Hi Pradeep
Any other common indicator that is similar to TI 65 found on stock charts that could be used ?
you can use rsi
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