RE: Beginners Questions
(2013-05-18, 09:24 PM)bluemosaic Wrote: Sounds like I am trying to over complicate this analysis then. So what should I be looking for when assessing breakouts and pullbacks with trend? Just increase of volume ?
On a trader breakout, according to the method you should be looking for a strong volume day on the breakout. Typically at least 3 times the recent average volume on the daily chart and a strong close above the breakout level near the high of the day ideally. You also want to see the weekly volume at at least 2 times the previous four weeks average volume.
Pullbacks are the opposite, in that you want to see the volume decrease when it pulls back towards the support and stabilises.
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.
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.