Another good place to look for this is Mark Minervini's book, as it give some examples similar on page 202 and 204, that show that the highest high isn't always used as the breakout level for trader moves. But instead the breakout above the more significant levels as the volatility contraction highs form.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(2017-01-10, 12:41 AM)isatrader Wrote: How I was judging it was on the 3 month closing price made on Friday at 9.30, as the October high was 9.28 according to the stockcharts chart. So the reason I chose to ignore the September high and daily closing high, was that it was blow off move after a long Stage 2 run and actually had a strong down week on that week. So I believe the the last three month of tops, of which there were five were more significant for the initial continuation breakout level, and close above those five tops was the breakout level imo.
So technically yes, the September high is the main breakout level, but I believe it's a less significant one than the other slightly lower more recent highs for the entry point to watch for. As they are much more closely grouped.
I think I may have been sticking too closely to the output of my database and not looking at the shorter term trends in the chart, noting that the longer breakouts are more significant.
What I have noticed is that if we look at a similar stock you seem to be a day or two ahead. So if I am a 3-5% (or worse) too late then that puts me in a worse position of the stock does not work out or at a significantly worse gain if it proves mediocre. Perhaps I'm putting myself at a disadvantage of several percent due to too high a breakout level and that is compounding resulting in poorer overall results?
Quote:See the attached 2% point and figure chart for a clearer example of what I mean as shows a clear view of the breakout level that formed over the last three months.
I've near really got P&F charts, but yes, there is a clear level from 9.09 to 9.27.
(2017-01-10, 01:15 AM)pcabc Wrote: I think I may have been sticking too closely to the output of my database and not looking at the shorter term trends in the chart, noting that the longer breakouts are more significant.
What I have noticed is that if we look at a similar stock you seem to be a day or two ahead. So if I am a 3-5% (or worse) too late then that puts me in a worse position of the stock does not work out or at a significantly worse gain if it proves mediocre. Perhaps I'm putting myself at a disadvantage of several percent due to too high a breakout level and that is compounding resulting in poorer overall results?
I think if you want to trade short term then you have to get in much closer to the ideal entry point or the additional risk that you are taking on will grind down your overall results like you say. Death by a thousand cuts as they say.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
(This post was last modified: 2017-01-10, 03:22 PM by shaunattwood.)
RE: US Stocks - Watchlist and Discussion
I reckon DDD will pullback big today and provide a second buying opportunity.
Great call on CUDA gapping up today -Isa.
DSXN looks interesting too - pcabc
re DSXN check out volume spike on DSX in Nov, looks like DSX coming out of a base post pullback
