Some indicators I use: 1. Number of setups: the less setups you see, the more likely it is that a BO will fail 2. ticker MMTH..... % of stocks above 200 SMA. Anything below 30% is horrible, 30-50% is mediocre, above 50% is good, above 70% is great. Just get a feeling for how it’s current state affects the market. 3. Your last few trades: did you get shaken out on all of them? Time to reduce risk or stop trading as a whole until conditions get better
When a stock breaks the 10-MA, I always want it to trade sideways until the 20-MA catches up. More explosive moves occur if the 20-MA vs 10-MA
just make a back watchlist. If multiple stocks are seeing, follow through that should be a good indication for breakout conditions. If stocks are breaking out and fully reverting on multiple names, then that should let you know the conditions. You just have to be consistent in your tracking of the breakouts. If your back watch list is empty and there are no set ups, then you should be cautious. You can keep this exercise very simple, and it will be effective.
it takes discipline to not play when you feel like the deck is cold. Don't let social media fool you, it's terribly difficult out there for swing traders
The volatility reels us in and leads us to believe "ohhh, maybe I can make money here" but very few groups/names aren't in meat-grinder mode
Even if you are long only, you just need to not be ashamed to be risk-off. I think the last few years have sort of conditioned people to always put money to work. I think it's a great time to put on our trader's cap and just be tactical ... try to avoid any long-term commitment with any sectors or individual stocks. Summer trading can be notoriously difficult because liquidity can sometimes dry up and things just sort of range bound
Leading groups
Leading stocks
Good fundamentals
Good bases - VCP and vol. characteristics
Vol. surge at pivot BO bar
ride trend
lock in profits along the way
The good ones just go, as for the others just get out with as small of loss as possible, stop at LOD (break out bar)
break outs that reverse back and hang around pivot, just get out by end of day or next open or at least reduce
don't fall prey to hope.
entered preset stop limit over swing high 1%chase.
lot of times gap up opens will fill then take off.
