Break Out Trader...

[PokerBrat]

Great video Baptist. I have been trading breakouts, but using a different method based on triangles.

Would you mind pointing me in the direction of some resouces where I can read up on the method you use? I don't understand all of the terms you use, like belt hold candle, and am keen to see if I can incorporate your method.

 

[The Baptist]

Candlesticks

Great video Baptist. I have been trading breakouts, but using a different method based on triangles.

Would you mind pointing me in the direction of some resouces where I can read up on the method you use? I don't understand all of the terms you use, like belt hold candle, and am keen to see if I can incorporate your method.

Hi PB,

I believe most of the terminology you are referring to our those surrounding Candlestick charting – ie. @Hammers’, ‘Tweezers’ , ’Belt Hold day’ ,’ Evening Star’ and my personal favourite’ The Abandoned Baby’ etc..

The absolute best resource for this and a great help for Tactical trading is Steve Nison’s Candlestick book.

I have linked it in below. I thoroughly recommend this tome to all traders and consider it one of the most significant in my trading success to date.

Japanese Candlestick Charting Techniques: a Contemporary Guide to the Ancient Investment Techniques of the Far East: Amazon.co.uk: Nison: Books

Regarding the ‘Hunt123 Flag/Funnel’ that is a personal creation specialising in a specific set up that I trade, teach in my seminars and provide 1 and 1 coaching on, PM – Me should you wish to hear more.

I hope you like the Nike trade posted after this, it just popped yesterday.
Good luck with the reading, learning and trading for now.

TB

 

[The Baptist]

Nike Inc

Hi,

Attached yesterdays Pop in on Buy Stop on Nike Inc.

Image attached below.

Buy stop - 55.90
Initial Stop Loss - 53.52
Stop Now - 54.41

Stop Profit 1 - 58.82 (70%)
Stop Profit 2 - 64.24 (30%)

Return On Risk - 189% (original stop as per day 1 entry) .

If done within 30 Days Annualised projected gain of 2273%

Good Trading.

 

[PokerBrat]

Thanks Baptist, I will have a look at that.

I like your 123 set up. The way you funnel the consolidation looks like it would achieve earlier entries and closer stops, than my current set up of using triangles.

For example, I would have entered Nike around 56.50 based on a rough idea of where I would draw the triangle on your chart.

Good stuff, keep it coming.

 

[The Baptist]

Some at varying stages of interest

Thanks Baptist, I will have a look at that.

I like your 123 set up. The way you funnel the consolidation looks like it would achieve earlier entries and closer stops, than my current set up of using triangles.

For example, I would have entered Nike around 56.50 based on a rough idea of where I would draw the triangle on your chart.

Good stuff, keep it coming.

I like Exxon, GKN, Standard Life and British Land.

 

[PokerBrat]

My tuppence worth:

XOM - looks ripe for a breakout, entry above 71 and stop under 69
GKN - I would be trading this on a break above 120, are you looking for it to pullback into your 123 pattern?
SLET - I don't see any set up yet
BLND - looks like it has already broken out above resistance at 518.

A few on my list: AQP, MXP, NBPO, RBS, SEY, VOG, GEMD

and US stocks: DHI, RYL

 

[The Baptist]

Break Outs

Still Like Rio Tinto Plc.

Got to many to list But will try get some new options and updates, there maybe a delay in major Breaks as shares are under a short term cloud.

So watching FOREX, for now.

 

[The Baptist]

Still Like Rio Tinto Plc.

Got to many to list But will try get some new options and updates, there maybe a delay in major Breaks as shares are under a short term cloud.

So watching FOREX, for now.

Nike Inc reached Target 1 of 58.9 today target 2 is 63.99 - no. of days 4. (entry 55.8)

Standard Life reached Target 1 of 205.7 today - TGT 2 is 219 - no of days 8. (entry 195)

Charts to follow when internet connection eases up.

 

[N Rothschild]

im far to lazy to look through stock charts for setups! futures are enough for me. are you trading DMA or spread betting baptist

 

[The Baptist]

fuzzy arithmetic

Technology + PC's + Code + scans = Lazy Boy lounging trader (rich?)

 

[GladiatorX]

Interesting journal Baptist Enjoyed studying your setups.

 

[The Baptist]

US Stocks: Scientific Games Corp; Health Care, Matrix United Bank UNM Financial, Pinnacle Entertainment - all look interesting to me at present

 

[PokerBrat]

Baptist, what do you use to screen stocks?

 

[The Baptist]

Colt Telecom - CenterPoint Energy (US)

Last Night working through my Scans I blogged a close watch on these two.

Entered on Colt this morning, somethings up ?

 

[PokerBrat]

COLT looks ripe for a breakout. Same pattern developing as previously in May when it enjoyed a 30% rise. The 100SMA is providing support and a rising 200 has just crossed above the 300, so a perfect bull set up.

The only thing that concerns me is that the money flow seems to be distribution, as shown by a falling OBV indicator.

As I write, seems like the breakout has stalled in similar fashion to yesterday when it formed an inverted hammer. Obviously a falling market doesn't help bullish momentum trading.

I see XOM is being wound ever tighter. Should be a good breakout on that one, given the size of the triangle pattern.

 

[The Baptist]

Baptist, what do you use to screen stocks?

I Run scans with criteria coded.

My front end is Metastock

 

[The Baptist]

COLT looks ripe for a breakout. Same pattern developing as previously in May when it enjoyed a 30% rise. The 100SMA is providing support and a rising 200 has just crossed above the 300, so a perfect bull set up.

The only thing that concerns me is that the money flow seems to be distribution, as shown by a falling OBV indicator.

As I write, seems like the breakout has stalled in similar fashion to yesterday when it formed an inverted hammer. Obviously a falling market doesn't help bullish momentum trading.


I see XOM is being wound ever tighter. Should be a good breakout on that one, given the size of the triangle pattern.

yup keep Exxon monitored.

Colt volume will increase with the BO, a pair of hammers one inverted is a great signal we are near the final stage of volatility being ironed out, use extreme high and low for buy & sell stops

 

[PokerBrat]

I Run scans with criteria coded.

My front end is Metastock

I have not used Metastock, at the moment I use ProRealTime.

Would be interested in your criteria. At the moment, I am simply browsing charts whenever I get a chance so am keen to find a more efficient way of screening stocks.

 

[PokerBrat]

Baptist - take a look at NYSE:MCD. Has a similar pattern to XOM.

Market looking a little bearish to me now, so it may be time to breakout the shorts as winter arrives!

 

[roughbert]

This thread has got me off my *rse and adding a funelling breakout sniffer to my home-grown stock charts. I am not an experienced trader but working at it! Question for you experts - how valid is the funnelling pattern observed in a bull market when the market turns?

It does not seem to make a lot of sense to just correct the pattern by factoring in the market rise (or sector rise), because a) a lot of trading activity is trend-following, and b) volumes are likely to drop sharply.

So is this just a technique for a bull market?