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Trading Information, Trading Strategies
2 Stock Breakout Strategies Analyzed
Last Updated on September 22, 2023 by Mark Ursell
Breakout strategies are one of the oldest and most powerful trading strategies.
A hundred years ago, Jesse Livermore was writing (with Edwin Lefèvre in Reminiscences of a Stock Operator):
“Remember that stocks are never too high for you to begin buying or too low to begin selling.”
“Timid people don’t like to buy a stock at a new high record. But I had the history of such movements to guide me.”
Lefèvre, Edwin: Reminiscences of a Stock Operator
Video
This video demonstrates my analysis of a classic price channel (Donchian) breakout.
I compare it to a variation that uses the price channel to trigger the entry but then waits for a pullback before entering.
The results were interesting and demonstrated that breakouts are an effective way to trade, and you can improve on the basic entry.
Stocks Tested
- Apple
- Microsoft
- Nvidia
- Berkshire Hathaway
- JP Morgan
- Bank of America
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