Best way to trade a wedge down breakout

[monkey180]

Hi all,

I would like to get into trading wedge down breakouts, at the moment I trade channel break out retests.

However, if I find a very clean a good setup for a wedge down break out, not trading the retest, I am getting frustrated of getting stopped out only to find that the stock goes in the correct direction.

I trade a daily time frame, but I guess applicable to other TF.

Either a wider stop? Or just pile in again if the stock break the trend line again.

I am also thinking options, maybe a ratio back spread.

What are your thoughts?

Thanks

 

[Fugazsy]

Hi all,

I would like to get into trading wedge down breakouts, at the moment I trade channel break out retests.

However, if I find a very clean a good setup for a wedge down break out, not trading the retest, I am getting frustrated of getting stopped out only to find that the stock goes in the correct direction.

I trade a daily time frame, but I guess applicable to other TF.

Either a wider stop? Or just pile in again if the stock break the trend line again.

I am also thinking options, maybe a ratio back spread.

What are your thoughts?

Thanks

Can you show a chart for what you mean?

 

[Splitlink]

Hi all,

I would like to get into trading wedge down breakouts, at the moment I trade channel break out retests.

However, if I find a very clean a good setup for a wedge down break out, not trading the retest, I am getting frustrated of getting stopped out only to find that the stock goes in the correct direction.

I trade a daily time frame, but I guess applicable to other TF.

Either a wider stop? Or just pile in again if the stock break the trend line again.

I am also thinking options, maybe a ratio back spread.

What are your thoughts?

Thanks

Perhaps dbphoenix might help He has a few threads. If you mean what he calls, springboards?

 

[tomorton]

Make sure you have a look at Thomas Bulkowski’s patternsite.com. Lots of useful guidance to defining and trading patterns.