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Tiger Gao Market Watch Break Out Trading Rules

Post on: 16 Март, 2015 No Comment

Break Out Trading Rules

Last update: September 04,2009

Tiger Gao’s Break Out Trading Rules Set A (complex pattern play)

Buy in only a new higher high is made (at least 1 cent higher than the breaking point)
If the breakout is fake, cut loss when the price is 5% off the breakout point. If the breakout is real,take profit according to the technical target.
Always measure the reward/risk ratio.
Price above 200MA, (without the golden crossing is also preferred.)
Previous attempting to form a golden crossing failed.

Keep each trade the same size for every 10 trades.

The fundamental analysis of the stock should be good. Play only the 1 year chart breakout (the formation time should be

1 year)

Complex pattern only(up pole + round bottom + multi-level ascending triangles must mixed together)

Tiger Gao’s Break Out Trading Rules Set B (trend reversal play)

Down trend — no trend fluctuation — down trend again

MACD divergence below the zero axis

Breakout the overall down trend line Then a new uptrend line (linked the previous low and the correction wave low) is formed Buying when the price touches the new uptrend line Target: the previous no trend fluctuation area

Cut loss at the new up trend line if broken down the uptrend line

TJTS pattern breakout completion key trading points

Round bottom formation is followed then Stock price stands above 250 MA MACD above zero Breakout target is at least double the breakout point price

Cut loss point is the round bottom support line

Patience is the key, time has its power

The pattern setup time should be more than 6 months

Enter once the bottom line of the V pattern is formed, at a price about the bottom line

Multiple V bottoms are more reliable, therefore, it can be traded several times before the real breakout

It’s especially good for the people who don’t want to spend too much time on trading

Above 250MA, any breakdown of V bottom line is a sign of weakness, and better to sell in order to protect the profits

The / top should create a new higher high, after a V bottom, otherwise, a sign of weakness too

Finally, if the weekly chart shows the topping sign (3 lines topping plus the breakdown of the low point of the 3 lines topping) then sell all position for safety. Otherwise, sit tight for the technical target!