The Blow-off signals the end of the 'play'
Abnormally High Volume compared to previous days + Candlestick making a new recent high
(and usually with an upper shadow)
The shorter the play, the easier it is to find.
Once a blowoff is made, expect a sharp decline, then a bounce
(bounce will not exceed blowoff's highest point),
then price action that will eventually lead to stock inactivity.
The shorter the play, the easier it is to find.
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| IP Daily Chart |
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| ISM Daily Chart |
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| PEP Daily Chart |
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| PAL Daily Chart |
Once a blowoff is made, expect a sharp decline, then a bounce
(bounce will not exceed blowoff's highest point),
then price action that will eventually lead to stock inactivity.
Do you buy exactly at the breakout candle or before that? Are there any clues from indicators before the breakout candle?
ReplyDeleteI buy before, during, and after. :D
DeleteDo you buy at resistances because a stock is a candidate to breakout?
DeleteIf you're holding a stock, how would you know up until what number of shares it is still liquid? Is this is the reason why you should sell in tranches?
ReplyDeleteIf you can buy all the shares you want with your overall port balance and be able to get it out the same day, then it's probably liquid.
DeleteBlow off patterns has upper shadows because these is the point when big market players unload their shares and eventually triggering the selling sentiment from other players.
ReplyDeletemr zee., anong ginagamit nyo na chart software?
ReplyDeletei can see alco jumpers
ReplyDeleteFffff!
ReplyDeleteIm seeing all of these good stuff for free?!
Thank you, Z!
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