Hey all, if anyone can help me understand my questions I'd really appreciate it:
1. How do I determine if a stock is going to breakout or breakdown real-time? I understand looking at a chart afterward seeing a breakout or breakdown, but how do I determine it while it's happening? Am I looking for something specific?
2. How do I determine the support and resistance levels? Am I looking at the 1-day previous chart, 5-day previous chart, etc.? Or do I look at all of them and find an average support or resistance level?
3. Should I be focusing on a certain time of day for breakouts/breakdowns i.e. only morning, mid-afternoon, or afternoon? Or all of them?
Any help is really appreciated!!
You never really know if it is going to breakdown or breakout, it's strictly a guess on the price action. That's why cut loses quickly is so highly empasized, if it breaks out you sell into strength, if not you get out.
@DeeSniper Thanks so much for your help!
@FrankieJr With a breakout, am I looking for it to go above the resistance level and for breakdown, am I looking for it breakthrough the support level? If so, am I looking at each level for that same day or looking back 1-day+?
Lets say we're trading a stock intraday. Intraday support is at 1.00, it's trading at 1.10 now, and resistance is at 1.20. You're looking for it to ideally break through 1.20 and push to say 1.30, where it runs out of steam and then you buy the pullback at ideally 1.20(only if 1.20 holds, this where that educated guess comes in). If it holds the 1.20 you go long with the goal of it testing the highs of 1.30 and possibly breaking out to new highs(if you're correct on the play from 1.20 and it bre
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