[isatrader]

   Thanks for the reply it definitely help me understand how to read the chart. I do have few questions regarding to what you said:
   1. when you said most recent support, you meant support level at 6.63$ on the daily chart?
   
   2. How was the Risk:Reward ratio being calculated? 

   3. I remember you said you won't trade any breakout that is 2x 52 weeks ATR? so this case, which resistance level do you use for the breakout at July 25th? The initial breakout of 7.76$ that was at July 3rd or long term resistance level breakout at 10.64$ ? 
thanks,
ark,

1. Yes the most recent weekly swing low at $6.63

2. You determine where the investor or trader method stop loss should go based on the methods requirements from the book. That's your 1x risk amount from the entry, and then the target should be at least 3x that distance from the entry the other way. i.e. so there shouldn't be any resistance from the last few years within that target range. I personally like to use 1:5 RR on my trades though. 1:3 would be a minimum.

3. I use the ATR for calculating position size and also as a guide for stop loss distance. So for me the 2x the 52 week ATR amount of the stock is the maxiumum that I will risk in a trade. So in this case the 52 week was around $0.95, so 2x was $1.9 from the entry point.
The lower breakout point was the close above the $8.49 May high, in July at $8.93. So 8.93 minus 1.9 = $7.03 maximum stop loss distance, which is above the $6.63 swing low, but is above the 30 week MA, and the 50 day MA. So a possible in terms of risk there, if you were willing to get in before the move past near term resistance, as you wouldn't hold if it fell back below the 30 week MA anyway.
The higher breakout point above $10.64, if you'd decided to get in close to that it, then the 30 week MA was at $8 then, so that's almost 3x the 52 week ATR past where I'd be considering a minimum for a stop loss, so there's no entry with my rules personally when it's that far away from it's stop position until it makes it's next decent pullback/consolidation after that, which it's doing now, as you need to establish where the nearest support exists first after such a big move in a short time, so that you can determine whether it's ok to move to new higher stop loss position.