Breakout Alerts

Here we will be tracking all of our breakout trades in 2023.

Our sweet spot for a breakout trade term is 9 months, that means if our initial estimation of trade goes wrong but we still have higher conviction in the stock based on technical analysis, then we hold the position for at least 9 months, otherwise we cut the loss and move to our next trade.

We also recommend to book profits in these trades occasionally if they are in profit or raise your stop loss to comfortable price, because momentum can swing to other direction quickly in such trades.

How do we choose our trades?

  1. Good quality companies in the midst of relative strength in comparison to SPX
  2. Recently either consolidated, pulled back or broke out.
  3. Alert based on technical chart analysis and stage analysis.

Following is the sample alert

Buy Alert: Buy NVCR
We are adding NVCR to our short term trade portfolio.

Position size is indicative. You should size your positions based on the risk taking ability and exposure to short term trades you would like to have.

Criteria to find stocks that are going to Breakout:

  1. Showing relative strength in comparison to SPX
  2. Moving averages(20, 50, 200) are coming closer together and consolidating
  3. Accumulation is above 50 week moving average.
  4. Stock is entering in Stage 2 of stage analysis.
  5. Stock is from a trending sector.

This post is for paying subscribers only

Already have an account? Sign in.

Subscribe to Alpha Investor

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.