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I have the same chart, but the upward moved doesn't look that strong on my indicators. It's just about overbought on my RSI. I think it will crash back down into the channel.
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jpeel001 jpeel001
I think it will be a failed breakout is what I was trying to say.
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RockyXu jpeel001
@jpeel001, it sure did like you said, but i do wonder how much it had to do with the general weakness in the market. What indicators do you look at for strength of the breakout?

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Damn it. I should have bought a put. Work gets in the way of trading.

I like buying breakouts on rising and falling wedges and where it seems obvious a stock is done moving in a certain direction - like a really clear elliott wave setup. I also look for divergence with indicators and good recent price movement. I use the Macd, Stochrsi, rsi, dmi and moving averages on the price. I'm suspicious of breakouts where my indicators are overbought. I'm also suspicious of a breakout up on a rising wedge - generally you look for a breakout down with a rising wedge.

Basically, with a breakout, I want a bullish or bearish chart pattern with my candles, divergence with my indicators and indicators that aren't played out.

I've also found that failed breakouts are often good trading opportunities.

Be careful listening to me. I'm just an amateur.
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jpeel001 jpeel001
and yeah - I think it did have something to do with the market's direction.
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