Dan Zanger: Examine Breakout Quality Before the Entry
A hypothetical stock spends six weeks below 80.00, then closes at 80.60 on twice its usual volume. By the time another trader notices, it is at 84.00. The chart still…
A hypothetical stock spends six weeks below 80.00, then closes at 80.60 on twice its usual volume. By the time another trader notices, it is at 84.00. The chart still…
Six weeks after a breakout from a 48.20 pivot, a hypothetical stock has run to 61.80. Then it gives some back. Three weeks in a row close lower, and the…
A hypothetical stock breaks above 42.00 on a fifteen-minute chart while its daily chart sits beneath repeated highs at 42.50. The short-term move is real, but so is the nearby…
Picture a stock that ran from 41.20 to 84.60 in five months and then spent eight weeks moving sideways. On a zoomed-out weekly chart the pause looks respectable. Price held…
Picture a growth stock that ran from 40.00 to 72.50 in about four months and then stalled. The first pullback took it down to 58.00, a drop of 20.0%. Weeks…
A growth stock clears a base at 54.80, runs for six weeks, and then the weekly chart goes quiet. Three Friday closes land at 61.20, 61.65 and 61.05. On the…
A growth stock runs from 32.00 to 60.00, pulls back to 44.40, works its way back up to 58.90, then drifts for two weeks inside a narrow range just under…
A growth stock spends seven weeks building a flat base under 48.20, then closes at 49.35 on volume running 2.1 times its 50-day average. Two weeks later it might be…
A growth stock has spent seven weeks moving sideways between 46.80 and 52.10. The 50-day moving average sits at 48.90 and is still rising. On a quiet Tuesday the stock…
A company lists with an offer price of $22.00, opens at 31.50, trades as high as 38.20 in its first session and closes at 34.10. Six weeks later it's trading…