Bounces and Breakouts

Bounces and Breakouts


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

More Information

Difficulty Level:Advanced

Course Syllabus
Bounces and Breakouts

Module 1Bounces 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?
Lesson 1Reading: Bounces and Breakouts 
Lesson 2Video: Bounces and Breakouts 
Lesson 3Quiz: Bounces and Breakouts 
Lesson 4Assignment: Identify Bounces and Breakouts 
Module 2Anticipating 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.
Lesson 1Reading: Anticipating Bounces with Fibonacci Analysis 
Lesson 2Video: Fibonacci Analysis (11:49) 
Lesson 3Quiz: Fibonacci Analysis 
Lesson 4Assignment: Using Fibonacci Analysis to Analyze Charts 
Module 3Anticipating 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.
Lesson 1Reading: Anticipating Bounces with Elliott Wave Analysis 
Lesson 2Video: Elliott Wave (15:33) 
Lesson 3Quiz: Elliott Wave 
Lesson 4Assignment: Find the Mistake in this Elliott Wave Analysis 
Module 4Confirming 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.
Lesson 1Reading: Confirming Support Bounces with Candlestick Patterns 
Lesson 2Video: Confirming Support Bounces – Candlestick Patterns (8:39) 
Lesson 3Quiz: Candlestick Patterns 
Lesson 4Assignment: Confirming Support Bounces with Candlestick Patterns 
Module 5Confirming 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.
Lesson 1Reading: Confirming Bounces and Breakouts – Volume 
Lesson 2Video: Confirming Bounces and Breakouts – Volume (17:12) 
Lesson 3Quiz: Bounces and Breakouts – Volume 
Lesson 4Assignment: Identify Bounces and Breakouts - Volume 
Module 6Confirming 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.
Lesson 1Reading: Confirming Bounces and Breakouts with Technical Indicators 
Lesson 2Video: Bounces and Breakouts – Technical Indicators (9:48) 
Lesson 3Quiz: Technical Indicators 
Lesson 4Assignment: Confirming a Bounce or Breakout with Technical Indicators 
Module 7Timing 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.
Lesson 1Reading: Timing Your Entry – Putting it All Together