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Sorry I haven't posted on the blog in a while. I always post the charts to chart.ly/twitter, but sometimes they don't make it to the blog. Anyway, heres what I'm looking at for tomorrow. Note: currently long KLIC
I use a buy stop limit order to play all my breakouts. For example, if I want to jump in BYD (see above chart) after it breaks 12.86...I'll set a stop at 12.88 with a limit at 12.88 or 12.89.
So the order triggers at 12.88, and I won't buy it any higher than 12.89.
Its always good to see the stop a couple pennies above the resistance to be sure that the breakout actually occurs.
Its also good to avoid numbers that psychologically attract investors. For example, with the UTSI chart above, I placed a stop at 3.01, since many people probably have sell orders in for $3, and it might not break this level, even though it got past 2.98.
newer trader trying to learn breakouts...what do you look for to enter? after it breaks the resistance?
ReplyDeleteI use a buy stop limit order to play all my breakouts. For example, if I want to jump in BYD (see above chart) after it breaks 12.86...I'll set a stop at 12.88 with a limit at 12.88 or 12.89.
ReplyDeleteSo the order triggers at 12.88, and I won't buy it any higher than 12.89.
Its always good to see the stop a couple pennies above the resistance to be sure that the breakout actually occurs.
Its also good to avoid numbers that psychologically attract investors. For example, with the UTSI chart above, I placed a stop at 3.01, since many people probably have sell orders in for $3, and it might not break this level, even though it got past 2.98.
Hope that helps!