Posted by falcon5678 on 14th of Jun 2012 at 11:10 am
Nice break but you had no chance to buy it on the breakout until
it was waaay above. But you could have bought low risk
on that head and shoulders you guys pointed out in the newsletter
the last few days. Great call. I'm starting
to really pay attention to those kinds of patterns.
Posted by darnelds on 14th of Jun 2012 at 11:20 am
Falcon, An alternative to buying inside the pattern
(before the break) is to create a buy stop order at the breakout
price. You can get whipsawed (price breaks above, triggers
your buy, then backs off back into the pattern), but it is one way
to get in without watching it all day. Only on high-volume
issues. If you try this with one of these dogs that has 50k
shares a day, they will trigger your order and take your money.
yep falcon - you had to buy it yesterday inside the
pattern, in hindsight I should have done that, I knew it was a
matter of time before it broke out, but sometimes as technicians we
try to be perfect and wait for the perfect break, but this market
doesn't always let you do that.
As a real time example, we'll see this same effect with the
market on Monday, right now the SPX has a potential inverse H&S
pattern, however we are likely to get some big gap on Monday.
You could buy inside the pattern, but then you risk a big gap
up or down on Monday
Otherwise over time I have learned to a lot of my trade ideas
inside the pattern vs waiting for a break, I dont' always do it,
but I practice that a lot and it works well, which makes sense
because most of the patterns we post are good patterns and end up
playing out anyway, so why not buy early inside the pattern,
especially if you see a MA or other logical support.
BOIL natural gas
Posted by matt on 14th of Jun 2012 at 10:52 am
BOIL - Chart Link - with zach speaking of Natural gas, huge pop in boil today, almost 13%, broke out of this bull wedge that was forming
BOIL - Chart Link 30 min view
Nice break but you had
Posted by falcon5678 on 14th of Jun 2012 at 11:10 am
Nice break but you had no chance to buy it on the breakout until it was waaay above. But you could have bought low risk on that head and shoulders you guys pointed out in the newsletter the last few days. Great call. I'm starting to really pay attention to those kinds of patterns.
Falcon, An alternative to buying
Posted by darnelds on 14th of Jun 2012 at 11:20 am
Falcon, An alternative to buying inside the pattern (before the break) is to create a buy stop order at the breakout price. You can get whipsawed (price breaks above, triggers your buy, then backs off back into the pattern), but it is one way to get in without watching it all day. Only on high-volume issues. If you try this with one of these dogs that has 50k shares a day, they will trigger your order and take your money.
yep falcon - you had
Posted by matt on 14th of Jun 2012 at 11:16 am
yep falcon - you had to buy it yesterday inside the pattern, in hindsight I should have done that, I knew it was a matter of time before it broke out, but sometimes as technicians we try to be perfect and wait for the perfect break, but this market doesn't always let you do that.
As a real time example, we'll see this same effect with the market on Monday, right now the SPX has a potential inverse H&S pattern, however we are likely to get some big gap on Monday. You could buy inside the pattern, but then you risk a big gap up or down on Monday
Otherwise over time I have learned to a lot of my trade ideas inside the pattern vs waiting for a break, I dont' always do it, but I practice that a lot and it works well, which makes sense because most of the patterns we post are good patterns and end up playing out anyway, so why not buy early inside the pattern, especially if you see a MA or other logical support.
Coal stocks next?
Posted by bgold on 14th of Jun 2012 at 11:04 am