Courtesy of David Grandey.
WOW! A breakout of a base let’s BUY BUY BUY right?
Not so fast. Before you just get impulsive look at the chart below that really shows today’s breakout action.
As you can see, you had all of about 30 seconds to pick this name off in the 96 level. But ever place an order to buy in a fast market? Odds favor you don’t get the instant execution and odds favor you’d have got filled a lot higher than where you entered the order. Our point to this is while it’s a breakout and that is a good thing you are now instantly chasing this stock. Don’t get us wrong, we like the pattern and confirmation of the breakout, but more often than not just sitting back and allowing a lower risk Pullback Off Highs pattern to develop or even an initial pullback is a much better trade.
To learn more about the Pullback Off Highs pattern and to receive our free report — “How To Outperform 90% Of Wall Street With Just $500 A Week”, sign up for our free newsletter or “like us” on Facebook.
GA_googleAddAttr(“AdOpt”, “1”); GA_googleAddAttr(“Origin”, “other”); GA_googleAddAttr(“theme_bg”, “ffffff”); GA_googleAddAttr(“theme_border”, “666666”); GA_googleAddAttr(“theme_text”, “333333”); GA_googleAddAttr(“theme_link”, “105CB6”); GA_googleAddAttr(“theme_url”, “8DAB3B”); GA_googleAddAttr(“LangId”, “1”); GA_googleAddAttr(“Domain”, “allabouttrends.wordpress.com”); GA_googleAddAttr(“Autotag”, “business”); GA_googleAddAttr(“Autotag”, “books”); GA_googleAddAttr(“Autotag”, “health”); GA_googleFillSlot(“wpcom_below_post”);
To learn more, sign up for David’s free newsletter and receive the free report from All About Trends – “How To Outperform 90% Of Wall Street With Just $500 A Week.” Tell David PSW sent you. – Ilene
