One of the core principles of the Record Price Breakout strategy has always been simplicity. The stock screen is easy to execute, the trading strategy has only 3 main points, and the market conditions for using the strategy are easy to identify.

That said, the most frequently asked questions I get about the strategy are about not the strategy itself. In fact, the two most frequent questions I get about Record Price Breakout stocks are:

1. How Do I Know When To sell
2. How Do I know When to Buy

How and When to Sell

To answer the question of when to sell, I put together a simple yet insanely popular software tool which I shows you the exact price levels at which you would want to set trailing stops to let profits run, as well as when to exit if a trade doesn’t go your way.

Record Price Breakout Entry Strategies

In case you’re unfamiliar, here’s a link to my Record Price Breakout trading strategy.

Entry Strategy – Use My New Profitable Entry Tool

I designed this new tool to help you find chart patterns. If a stock is a record price breakout candidate, and breaks out of a well known chart pattern such as a bullish flag or continuation triangle, all the better. It will also show you at a glance if the volume and P/E ratio components of the stock meet the criteria for a record price breakout stock.

Entry Strategy – Marketclub Weekly Trade Triangles

It’s no secret that I am a huge fan and supporter of Marketclub, the Ino Traders blog, and Trade Triangle Technology. If you are unfamiliar with trade triangles, just check out this quick video:

To combine Trade Triangle Technology with the Record Price Breakout trading strategy is quite simple:

1. If all three triangles are green, open the trade.
2. If daily triangle is red, wait for it to turn green to open the trade
3. In the very unusual situation where the weekly triangle is red, wait for it to turn green.

In cases 2 and 3, the monthly triangle must always be green, and in all probability you’ll never see an RPBO with a red monthly triangle.

Entry Strategy – Just Do It

The beauty of this strategy is that the stock is at a high. This means there is little to no resistance over head, and Because you waited for a spike in volume, it is likely the stock has upward momentum and hence plenty of room to run.

Entry Strategy – Wait For a Retest
Many traders like to establish key trading levels as support before entering a trade. Waiting for price to come back to a key level before going back higher is known as a retest.

Entry Strategy – Use Technical Indicators and Indicator Patterns

Using technical indicators is a key aspect of technical trading. While I won’t describe how to use them here, I will show a setup I like to use.

In the chart below I have the Marketclub trade triangles on as well as 3 technical indicators: ADX, MACD, OBV.

These indicators follow trend strength / quality, momentum, and buy / sell pressure respectively. If there is no divergence in the ADX, the DMI+ is above 25, no divergence in the MACD, MACD histogram is positive, and OBV is rising, then entering an record price breakout is a great option.

Popularity: 12% [?]

If You Like Our site: Automatically Receive Updates To RecordPriceBreakout.com Via Email. Thanks for visiting!