OMG' has been silently up 100% over the past few weeks and after making a new all time high it appears to be setting up to continue its path higher However before you run out and buy because it hit the breakout level I want to clarify what this means.
There is some confusion on what a "Breakout" is and what testing a level is. So on the chart, to insure it is clear, I have posted two examples. Poking through temporarily and pulling back under a resistance line is NOT a breakout! This is not a we get to 20.1254 its all in! We need to see how the market reacts at these critical levels. So what is meant by this statement "breakout" (at least when following me), is that we have a well defined break through of the level, either on a very strong closing candle and continuation or a retest of the level.
When I first started posting I called these levels of "reflection". There was a reason for this and the reason was simply, we want to see how the market reacts at these critical levels. I very rarely put in buy here sell here orders. I rarely if ever use automatic stop losses. I feel its very important to monitor your trade from entry to exit. How many times has a equity stopped just short of your sell price only to pull back 20% or more? I personally had it happen often when I first started trading. This is why its important to have a basic understanding of charts and price action patterns/trends if you are investing and more important if your trading.
I can not tell you how many times a "wick" touched a level and people flock in like its a "golden number", only to send me a barrage of messages that I was "wrong". Fibonacci and Elliott Wave are guides not crystal balls. There are no palm readers in trading the market period! There are only wolves and gazelles.
Now there are other ways to identify breakouts such as candle stick patterns which @marcPmarkets uses and identifies in his charting. I am reading his book and am testing techniques on a small scale until I can get a better feel for it. I also have my own method which is similar to the Darvas trading system, but the more tools we have the better we are at developing our own system. So branch out.
I want to see a break through of the $22 level before I enter a trade here. This will be an addition to my core holdings with the intent of adding any profits to my core position for free. I have a final target price of around $40. This is clearly a longer term trade setup and I will start shaving off at the targets listed above, and may add on dips. What will trigger this? Price points? NO!!! How the market reacts at these levels. There is no reason to enter early as often wolves corral the gazelles in the direction they want for a feast. It is better to leave a couple bucks on the table, then to end up being the main dish.
Disclosure: I'm long term OMG' and looking to buy a breakout of the $22 level. I do not have time to post real time trades, so I recommend doing your homework and develop a strategy and plan for trading.
There is some confusion on what a "Breakout" is and what testing a level is. So on the chart, to insure it is clear, I have posted two examples. Poking through temporarily and pulling back under a resistance line is NOT a breakout! This is not a we get to 20.1254 its all in! We need to see how the market reacts at these critical levels. So what is meant by this statement "breakout" (at least when following me), is that we have a well defined break through of the level, either on a very strong closing candle and continuation or a retest of the level.
When I first started posting I called these levels of "reflection". There was a reason for this and the reason was simply, we want to see how the market reacts at these critical levels. I very rarely put in buy here sell here orders. I rarely if ever use automatic stop losses. I feel its very important to monitor your trade from entry to exit. How many times has a equity stopped just short of your sell price only to pull back 20% or more? I personally had it happen often when I first started trading. This is why its important to have a basic understanding of charts and price action patterns/trends if you are investing and more important if your trading.
I can not tell you how many times a "wick" touched a level and people flock in like its a "golden number", only to send me a barrage of messages that I was "wrong". Fibonacci and Elliott Wave are guides not crystal balls. There are no palm readers in trading the market period! There are only wolves and gazelles.
Now there are other ways to identify breakouts such as candle stick patterns which @marcPmarkets uses and identifies in his charting. I am reading his book and am testing techniques on a small scale until I can get a better feel for it. I also have my own method which is similar to the Darvas trading system, but the more tools we have the better we are at developing our own system. So branch out.
I want to see a break through of the $22 level before I enter a trade here. This will be an addition to my core holdings with the intent of adding any profits to my core position for free. I have a final target price of around $40. This is clearly a longer term trade setup and I will start shaving off at the targets listed above, and may add on dips. What will trigger this? Price points? NO!!! How the market reacts at these levels. There is no reason to enter early as often wolves corral the gazelles in the direction they want for a feast. It is better to leave a couple bucks on the table, then to end up being the main dish.
Disclosure: I'm long term OMG' and looking to buy a breakout of the $22 level. I do not have time to post real time trades, so I recommend doing your homework and develop a strategy and plan for trading.
Comment:
Comment:
I know its NEO but I want to clarify what a breakout is. yes I did buy it! But I'm monitoring it closely to insure its not a fake break!
