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Breakouts

The Ultimate Nasdaq Breakout Trading Plan [10x-100x Potential]I love penny stocks and small caps for so many reasons as a full-time retail trader. I don't wanna advocate it, or get philosophical if blue chips are better or not so let's just talk money. The volatility you observe on small caps are many times far greater than cryptocurrency itself, and it's far less popular, so less manipulation and fewer robots - most of my strategies and indica tors have clearer signals trading small caps. We are talking about a stock that was traded at $1000 and now is at $3.6, that's what I call a good range. The actual price is nothing less than 163% of the 52 weeks lowest low, once again, that's what I call a good range. That said, let's get at it. This is my basic trading setup, the left part of the screen is basically my screeners , I keep track of 20 assets that I previously filter with fundamental and news research. From those 20 filtered assets, it's where TA comes in handy. Spectrum Screener tells me without with one glance what I should look at now without wasting my time analyzing chart by chart. Usually, I pick the 4 best assets and divide my daily trading capital among those 4 positions. The position sizing has a very specific rule, where there are weights based on a grade that I give to each and every trade based on how likely I think that it will be correct. This asset had over $500k in traded volume that tells me I should not trade anything above $5k/daily to be able to enter and exit fast if needed. (1% of total daily volume) Now we know how much I'm trading, I take a look at the bigger timeframe on the lowest right chart(D) - that will give me the overall idea of what is going on and what strategy I'll choose. Once I knew it was a breakout, I picked one of my strategies that I think fitted best and I'm following it. The way I do it is through a smaller timeframe chart, so that gives me more precision with my entry price. The Gray Breakout lines are not aligned at the same price because the D was unprecise and I like to use price lines with high + low / 2. I like how it gives you a better overall idea but it's not really good for final entry/exit prices, you want to use it to understand what you're dealing with and what strategy you should use - lines are great for that, also H+L/2 removes a lot of noise. That said the rest is really self-explanatory. ATM I'm up more than ~+4% and my stop-loss is set for a ~+1.5% profit, I do that to not transfer a winning trade in a loss. By raising my stop-loss I get rid of amateur losses and let me eliminate unnecessary risk. Let's say we get stopped and I'm out with +1.5% profit, there are two scenarios the asset dives down and we avoid a horrible situation or it goes back up. In case it does go back up we already have a minefield of buy-limit orders and even a small order stop-buy order on the stop-loss level just in case we miss the bottom. In this way, we eliminate all the downside and only get in when risk is minimal once again. Now the strategy is pretty simple and we use just a few simple yet robust features from Spectro M . The volume analyzer, Specter Clouds, XConfirmations Reversal Warnings and the classic Spectro Oscillator itself. How I used them is explained and compared in the chart. You can use this similar approach for other breakouts. Also, raise your stop-loss wisely. In this topic, I'll not discuss risk management so pick your favorite protect-profit strategy.
RLong
by spectertrading
Supports and Resistances : Everything You Need to KnowSupports and resistances are horizontal lines on the edges (borders) of congestion areas. The bottom line is the support: the level where buyers strength overcome sellers, and buys are strong enough to reverse the downtrend. The top line is called the resistance: level where sellers strengh overcome buyers, and sells are strong enough to reverse the uptrend. It is more preferable to create your support and resistance lines along congestion area's borders than extreme price action, since these borders illustrate the point where most traders changed their mind, whereas the extremes are only reflecting a few people panicking. Psychology Traders remember at which price they bought or sold, and this is what create supports and resistances. Support and resistance zones often switch roles: when a support is broken it will become a resistance, and vice versa. This happens because as the market makes a breakout downwards, buyers feel pain and wait for a rally to free themselves without cost, whereas sellers regret and wait for a rally to have a second chance to short. The buyer's pain and seller's regret create the new resistance. A support or resistance is going to be more significant if the preciding price action was steep rather than a slow ascending or descending trend. Volumes Low volumes around a resistance or support area indicates its fragility. Traders aren't feeling quite involved in it. However huge volumes show strength in this level. Trading Rules 1. When you are surfing a trend that is reaching its support or resistance, move your protection stop closer. The trend will reveal its health at this point: it can either go faster and your stop isn't triggered or it can bounce on the Trend line and your stop securises your profits. 2. Supports and Resistances are stronger on a bigger timeframe. Weekly charts are stronger than daily charts. This way, if on the weekly the price is flat and on the daily the price action is hitting a support or resistance then the signal is less important than if price was reaching a support or resistance on the weekly. 3. Resistance and support levels are usefull to setup stoplosses and take-profits orders. If you are buying, the lowest value in a support area can be used as a stop if you place it just underneath. Breakouts A breakout happens when the price breaks out of its trading range, but most of breakouts are fake breakouts. Be careful of fakeouts : it is more often an opportunity to position against them, with a protection stop. "Fakeouts" or "fadeouts" are when the price tries to break a support or resistance but end up returning in its trading range. How to know when a breakout is fake or not? True breakouts are confirmed by high volumes and technical indicators showing new highs or new low. Also we should be able to see the new trend on a higher timeframe. Fake breakouts tend to happen on low volumes and indicators divergences. In order to trade fadeouts, wait for price action to stop making new highs or lows. This is when prices fade. Then, place your stop on the extreme, risk is low, but chances are that price will make a pullback in its congestion zone. You liked this article? Make sure to leave like or a comment :) --------------------------------------------------------------------------------------------------- My Website - Automated Strategies with Backtest and Alert Setup blockchainfiesta.com PineScript Development, Reverse Engineering Comissions open (1 slot)
Education
by cyatophilum
3
Cardano 1h 18/12/09Greeting all. Cardano has been consolidating from the previous sell off this weekend and it might be coming to an end. The consolidation is taking form of a symmetrical triangle. Nothing fancy but they are at a pivot point so it will determine if this is a longer term rally. They broke the pattern for a few minutes right on the next hour candle so it looks like a break but was really just a sudden burst which happened on both sides so its undetermined which is stronger. Symmetrical triangles can go both ways so we have to wait for a confirmed breakout. The consolidation is quite large so we can look at a nice 3:1 risk/reward setup. Going up I'd look out at the major resistance for a possible bounce back downward if the bulls aren't strong enough. Downwards... well doesn't look like we've found the floor yet except for where the selloff ended. So keep a eye around there. I'm not a financial adviser. Trade at you're own risk.
BINANCE:ADAUSD
by Phyro
1
$NANO.OL Nordic Nanovector breaks through 2 year long downtrendWith the #ASH18 conference getting closer, Nordic Nanovector has punched through the 2 year long downtrend from the ATH in December 2016. -------------------------------------------- CEO Eduardo Bravo presented at Jefferies 2018 Global Healthcare Conference 14-15 November 2018 nanoinvestors.wordpress.com Betalutin, the lead product from Nordic Nanovector has received FDA Fast Track designation and UK Promising Innovative Medicine designation. nanoinvestors.wordpress.com nanoinvestors.wordpress.com -------------------------------------------- Market has recently been impressed by the strong performance by NOVARTIS in the field of Lutetium 177Lu based radiopharmaceuticals. nanoinvestors.wordpress.com nanoinvestors.wordpress.com nanoinvestors.wordpress.com nanoinvestors.wordpress.com
NLong
by savepiginvest
Ascending triangle pushing BTC above 7kThe price has been making higher lows inside a consolidation (trading range) for a few days now. Major trend in BTC is still down, but we do have a local uptrend since 6100. These types of consolidations inside a local uptrend are more likely to break out to the upside. The higher lows inside a range are a sign of accumulation (supply drying up, demand increasing slowly) From the classical charting perspective, this is known as an ascending triangle. It indicates what I described above. Targets (based on the resistance levels along the way) are: 1. 6778 2. 6874 3. 6929 4. 7044 5. 7144 6. 7286 (maximum projected target of the pattern) The price may get rejected at any of the targets mentioned above, so it's always a good idea to lock in partial profits at each of the targets as they get reached. The invalidation of this entire move will be a daily candle close below 6330 pivot (key) point. Measuring Risk/Reward ratio based on this pattern, it would be slightly over 1:3 (taking 6295 as a stop loss and 7286 as a max target).
BITMEX:BTCUSD.PLong
by eyupium
BTCUSD Yearly Descending TriangleSo i have been keeping an eye out for this yearly descending triangle and waiting for the right postion. I see that we have some higher lows formed but i have not been sold on the highs yet if they have played out the full move or not. I feel at this point it made its move up and we will maybe retest again somewhere near the recent high but im looking to get in a short if that happens. Lets keep an eye out for now and see. If there are any coins or patterns/indicators anyone would like me to check out please let me know! Im still trying to learn all the tools for making the charting pretty for everyone. "Long way togo" Enjoy your weekend talk with you all soon!
BITFINEX:BTCUSD
by 2Legit
Bitcoin comparison 2014 / 2018 - break up or down? decision timeI have tracked BTC/USD 2014 market movements and correlated them to the current Bitcoin chart, marking possible similarities, resistances & breakouts. The current position of Bitcoin after the recent rally is drawing closer to the upper resistance, so will BTC breakout - fakeout or drop down to the lower resistance - decision time is looming with Bitcoin maintaning it's price ranging at 6500 USD its on course for a clash with the upper resistance by Mid October at any rate.
BITFINEX:BTCUSD
by mmacwj
EURUSD D1 breakout and subsequent H1 opportunitiesSee chart for relevant explanation. These two levels offer clear markers we can use for context relative to the D1 wedge berak. The eventual break of A looks great in hindsight, but wasn't a great breakout setup. B provided a much stronger story, and exactly the sort of price action we're looking for ahead of a breakout. I'm borrowing directly from Bob Volman --> trading around these levels is highly dependent on the presence of buildup and potential for double pressure. The break at B is one of the few grade A BO setups. We expect the kind of momentum that followed because the Bull-Bear fight that went on for the prior couple of days suddenly has a total paradigm shift. The same level, at which we're experiencing directional contraction (wedging against the level), is where longs are going to be forced to sell and aggressive shorts will be looking to sell to enter (hence, double pressure).
by structuredtrader