Breakout doesn’t mean that you can apply to all charts.
Understand the behavior of the chat previously, look at some of those, breakouts, if there’s any in that chart itself. Then it shows signs that it consolidates breakout, then you would just stay and continue to go higher and go to the next zone without pulling back all the way, back in again, or is it the kind of stock that is like this, that you will keep on going on a 45 degree, goes up to the upper boundary, then you will pull all the way to the lower boundary. Then it starts to go higher to the higher boundary and pull back to the lower boundary again.
So if it’s like that, then you’ve got to just count off the importance and validity of breakout trades in these kind of charts. So you need to segregate the charts to know what kind of stuff belongs to what kind of category. Is it more suitable for pull-back reversal or is it more suitable for breakout trade, so that’s the reason why, in a blueprint cost I caught these two major things right. So maybe I didn’t emphasize strongly enough to bring a grouping cost, okay instead you need to use either one based on the characteristic of them-
And not just use both of them in every single stock. If you see a pull-back reversal you also get in, you see a breakout you also get in, no, it has to be based on the characteristic of the stock, then you decide which one is more suitable for this particular stock and use it accordingly.
Okay? So I hope this part I think it’s pretty clear obvious. It’s an upper channel boundary right now, even if there’s a break out, what is the reward to risk? Ratio? and what are the chances that you will actually shoot beyond that upper channel boundary-
To give you a very… to potentially treat our kind of return very high. It’s not so ideal.
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