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Need help finding breakouts

Discussion in 'Trading Strategies/Systems' started by alexonline, Oct 11, 2013.

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  1. alexonline

    alexonline

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    Hey guys,

    For the past couple of months I have been watching and reading about trading.

    I really like the breakout strategy it's so beautiful.

    I have an understanding using technical,fundamentals and physiological concepts.

    But I need a formula to find breakouts or potential breakouts...

    So i'm using a screener but i'm confused on what settings I should place it on.

    I initially used these below but need your help to find breakouts please
    Volume > 500,000
    Percent > 2.95
    last price >0.1

    Should I use relative strength. Could you explain to me how you do it please???

    Here is the screener I use ww.barchart.com/stocks/marketoverview
     
  2. havaiana

    havaiana

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    This advice is in relation to relation to indices and currencies, I don't know anything about stocks.

    I'd suggest to have time of day as a filter

    Something to take into consideration with any backtesting is that a lot of breakouts that will look good in testing/on charts etc, would have happened during some sort of new release and you wouldn't have got a fill close to where price broke out

    Your link had a chart of the S&P index, keeping in mind I know nothing about stocks I would guess breakout strategies would have more success on individual stocks than on a stock index itself

    Not sure if the info you have will find a breakout until after it has happened, would be too late to enter, unless you want to wait for a retrace to get in

    Also your larger than 2.95% thing, have you checked how often a breakout out will make another 1% when this happens versus how often it will retrace 1%? Anything less than 50% would indicate you are trading the wrong direction imo
     
  3. skyQuake

    skyQuake

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    What if a $1 stock traded 50k vol?
    And why 2.95% move?

    In general though, the best way to look for breakouts is to eyeball charts. When its already "broken" out, all the buy stops have triggered and risk/reward becomes crap
     
  4. Gringotts Bank

    Gringotts Bank

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    I feel like I've seen you on here before alexonline, perhaps by a different name. Something about the way you write.

    Breakouts happen when support/resistance and/or trend lines are broken. Get some software that lets you draw lines on your charts with the ability to alert you (audibly) if they get crossed. Do all your line drawing the night before.
     
  5. JoshuaJ

    JoshuaJ

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    I believe you have.
     
  6. spydoo

    spydoo

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    Hi

    I just saw this post. What software can do this, please? I'm very interested in this.
     
  7. pixel

    pixel DIY Trader

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    The better question would be "Is there any useful software that can NOT do this?"
    Attached example (my stock selections blocked out to avoid off-topic discussion) comes from the latest version of D2MX's Market Analyser 7; it uses data and filters from webIRESS.

    alerts.gif

    I get the break/ alert values from trendlines or volatility calculations on my charts.
    I could use the same conditions to trigger conditional buy/sell/stop orders; but I personally prefer to decide myself when, and for how much to pull the trigger.
     
  8. Wysiwyg

    Wysiwyg Everyone wants money

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    Proliferation of breakouts in recent times. Too many for me to take on that's for sure. Plus market unsure with You Ess Ay news.
     
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