Sunday, February 2, 2014

lesson to everyone, buying on a breakout is not always a good idea 2-3-2014

lesson to everyone, buying on a breakout is not always a good idea.

I really don't do this strategy in my entire life, as there is a huge risk on doing it. Even though someone is saying a huge Volume on a breakout indicates a successful move. It aint 100% going to that direction.

Sometimes volume traders just make a false breakout making you accumulate what they sold.

Last week, I heard many firms upgraded their forecast with some "buy on breakout" strategies, I can't help but comment on them. Since what they received was another "WHIPSAW"

So just my two cents, just do accumulate on lows, where volume is low, RSI is very low and technical trendlines are pointing to a possible medium to long term support.

PSEi short term uptrend support now at 5968, and a break below that level will make us revisit again 5700-5800, remember, the more times it get to a support, the more exhausted it gets.


Peace!

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