If you're still on the fence as to what this market is considered, guess no more. We are in a bull market! Week after week, we are making new, all-time highs and today wasn't an exception. I will tell you, what I've told myself, "don't fight the tape; making money is a lot easier in these types of markets".
With that said, I am about to share with you a strategy to trade during these types of markets. It is one of my all-time favorite techniques to deploy and a classic among traders.
As the name suggests, simply buy the breakout. What do I mean by, buy the break out? In this scenario, it means buying at the intraday high (in the example listed below). For the most effectiveness: Don’t buy the stock on the first break out, wait for and buy the stock on the “pull back”. The intraday high, once acting as resistance, is now support (demonstrated below by the blue line). Find a 5 min chart below for ticker symbol SUNE for further explanation.
Buying the break-out would have worked on trades $SORL, $BABA and $ACIA to name a few.
Pull up a chart and find the next break-out.
TIP: Break-outs can be seen on daily, weekly, monthly, quarterly and yearly charts. Ensure that volume accompanies the break-out.
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