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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: Robert Graham who wrote (8475)	5/12/1998 1:44:00 PM
From: Chris	of 42787

[more thoughts re: bob g's momentum post] <<What is interesting is that on a strong breakout of a stock, if the stock manages to pull back to what was the resistance that it broke out from before continuing, then this usually means that the breakout will be accompanied by strong momentum. However, watch out for a bull trap where the price ends up breaking down through the resistance line it broke out from. When this happens, the price can have just as strong of a downward reaction to this failed breakout.>> yes, those are my favorite plays.. use of a buy stop to catch any breakout. usually 1/4 abv the old high would be nice. (on good volume)... futhermore, the closing price must be up high. ie: RADAF's valiant attempt yesterday was terrible. the closing price was 1/8 (or so) abv the open. the high was 1 pt + above the open.. furthermore, assuming your buy stop got hit at the old high, one would put a SELL stop right under the broken old high. any breakout must be strong and end up closing in "new high" territory.. thus, any retrace in price back BELOW the old broken high is a BAD sign. sure exit in my book..

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