March Review- April Goals
March Review: Breakouts Setup was in focus as planned. Possibly one of the most important studies so far!
The results are cool and can be practically applied to identify, understand and trade the setup. I can now say with very high confidence that I know the Breakout Setup Qullamaggie Style, and it’s such an amazing structural behavior of the market. If you missed the results, please make sure to watch this video in detail; if you will have a close analysis of the results and do the exercise, it should change your understanding and help internalize the setup: https://youtu.be/EdIUHBmyP88
April Goals: the main focus is to study the setups that entered into a consolidation but failed to have a breakout, to understand their behavior before failing and look for structural clues on why they failed.
- Identify failing breakouts within the full studied universe of 2500 stocks over a 6 years period. Yeey! print screens mode on… I am a print screen machine, that’s for sure…
- Study failing breakouts and the market to see if failure is due to the stock itself - which may be overextended or due to market (SPY) corrections.
This will help to gain more diagnosing elements and experience with setups that have a higher probability of failing so that I don't mess up with those on the long side.
The trading suggestion of the month: A key finding from the breakouts map and from the intraday analysis was that 92% of breakouts happened when the market was in a sideway or uptrend environment. As a result, it’s key to constantly listen to macro analysis perspectives to get an understanding of the market trends, especially these days when the Fed is so imperative in the macro space.
Here are a couple of YouTube channels with good-quality macro analysis which I found useful (no affiliation):
@CiovaccoCapital
https://www.youtube.com/@CiovaccoCapital
@fxevolutionvideo
https://www.youtube.com/@fxevolutionvideo
If you know a better macro analysis channel, tag me on Twitter (@florinlazar001) or drop it in the comments below. Thank you.
Wish you a great month ahead!
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