Bounces and Breakouts
Learn how to identify and confirm both bullish and bearish bounces and breakouts using a variety of technical methodologies and indicators.
Once you have decided to enter a trade, the next choice you need to make is when you are going to enter that trade. Market technicians have a distinct advantage over fundamental analysts in this regard because they can look for specific price points at which to tack action, instead of hoping that the stock is going to turn around.
In this course, you will learn:
- Why technicians look for support bounces and resistance breakouts
- How to anticipate bounces using Fibonacci analysis and Elliott Wave analysis
- How to confirm bounces using candlestick patterns
- How to confirm breakouts using volume and other technical indicators
Once you have completed this course and implemented the concepts, you will:
- Be able to analyze a stock chart to understand points of support and resistance bounces and breakouts
- Use a variety of technical approaches to anticipate potential moves in a stock and confirm whether a breakout has actually occurred
Bounces and Breakouts
|Bounces and Breakouts
|Most market technicians prefer to buy stocks either on support bounces or resistance breakouts because bounces and breakouts indicate something material has changed on Wall Street and new opportunities are opening up. Will you be ready to jump on board?
|Reading: Bounces and Breakouts
|Video: Bounces and Breakouts
|Quiz: Bounces and Breakouts
|Assignment: Identify Bounces and Breakouts
|Anticipating Bounces with Fibonacci Analysis
|Anticipating support bounces during bearish pullbacks is a high-stakes activity that can pay off handsomely when done correctly. You can make this task much easier if you employ a simple Fibonacci analysis, but you have to implement it correctly if you want it to be effective.
|Reading: Anticipating Bounces with Fibonacci Analysis
|Video: Fibonacci Analysis (11:49)
|Quiz: Fibonacci Analysis
|Assignment: Using Fibonacci Analysis to Analyze Charts
|Anticipating Bounces with Elliott Wave Analysis
|Most technicians are familiar with the basic tenets of Elliott Wave analysis, but that's about where the knowledge stops. Unfortunately for them, they are missing out on one of the most beneficial applications of this methodology. Don't be one of them.
|Reading: Anticipating Bounces with Elliott Wave Analysis
|Video: Elliott Wave (15:33)
|Quiz: Elliott Wave
|Assignment: Find the Mistake in this Elliott Wave Analysis
|Confirming Bounces – Candlestick Patterns
|Candlestick analysis has become a household term on Wall Street since Steve Nison brought it back from Japan, but too many investors are still misapplying this fantastic tool. Unlock the full potential of candlestick patterns and gain more confidence in your trading decisions by combining them with the support levels on your chart.
|Reading: Confirming Support Bounces with Candlestick Patterns
|Video: Confirming Support Bounces – Candlestick Patterns (8:39)
|Quiz: Candlestick Patterns
|Assignment: Confirming Support Bounces with Candlestick Patterns
|Confirming Bounces and Breakouts – Volume
|In this new market environment of high-frequency trading and exploding exchange-traded fund (ETF) use we find ourselves in, the information we are able to glean from volume data has changed somewhat. Find out what you need to be looking for to ensure the volume patterns you are seeing are truly confirming the bounces and breakouts on your charts.
|Reading: Confirming Bounces and Breakouts – Volume
|Video: Confirming Bounces and Breakouts – Volume (17:12)
|Quiz: Bounces and Breakouts – Volume
|Assignment: Identify Bounces and Breakouts - Volume
|Confirming Bounces and Breakouts – Technical Indicators
|Many technical analysis books and trading systems rely heavily, if not solely, on technical indicators. After all, the sometimes complex equations these indicators are built on lend an air sophistication and professionalism we crave as individual investors. However, we take a slightly different approach to technical indicators. Instead of using them as the primary drivers of trading decisions, we use them as tools of confirmation. Come find out why.
|Reading: Confirming Bounces and Breakouts with Technical Indicators
|Video: Bounces and Breakouts – Technical Indicators (9:48)
|Quiz: Technical Indicators
|Assignment: Confirming a Bounce or Breakout with Technical Indicators
|Timing Your Entry – Putting it All Together
|You've learned a lot of different approaches and tactics you can implement to time your trade entries in this step. Now, it's time to put everything you've learned together so you can use this information in a disciplined, repeatable, effective manner.
|Reading: Timing Your Entry – Putting it All Together