breakouts from base pattern - similarities to Turtle Method?
Posted: Wed Dec 31, 2003 6:10 pm
Hello all
Happy New Year to everybody. I am a trend trader using primarily MA crossover but recently "discovered" that breakouts from a base pattern can be very rewarding. I use IBD data to determine underlying sector strength and accumulation/distribution activity also. I like breakouts with "A" Group and "A" or "B" Accum/Dist ratings.
My question is, I have not read the turtle rules in quite some time, and last night I re-read them, and came to the conlusion that using a 20-day breakout or 55-day breakout is pretty much the same thing I am doing (which I stumbled into after 3 years of trading and learning.). This is a very simplistic assessment, but for entry, am I correct?
Please see the charts below for examples of real stocks I actually owned based on "breakout" pattern. I use Amibroker to scan for new highs over last 60 days. A Buy Stop order is placed for the next day slightly higher than the previous days high in order to confirm trend.
http://stockcharts.com/def/servlet/SC.web?c=CLCT,uu[g,a]daolyyay[dc][pc50][vc60]&pref=G
http://stockcharts.com/def/servlet/SC.web?c=PETD,uu[g,a]daolyyay[dc][pc50][vc60]&pref=G
http://stockcharts.com/def/servlet/SC.web?c=NIAG,uu[g,a]daolyyay[dc][pc50][vc60]&pref=G
Some reading on the internet tells me that this method is known as "Channel Breakout", and was pioneered by who?.....Richard Donchian, who as we know helped implement the use of MA's and also inspired the Turtle Method.
Looking for comments, ideas, suggestions, etc!
Take care
BILL
Happy New Year to everybody. I am a trend trader using primarily MA crossover but recently "discovered" that breakouts from a base pattern can be very rewarding. I use IBD data to determine underlying sector strength and accumulation/distribution activity also. I like breakouts with "A" Group and "A" or "B" Accum/Dist ratings.
My question is, I have not read the turtle rules in quite some time, and last night I re-read them, and came to the conlusion that using a 20-day breakout or 55-day breakout is pretty much the same thing I am doing (which I stumbled into after 3 years of trading and learning.). This is a very simplistic assessment, but for entry, am I correct?
Please see the charts below for examples of real stocks I actually owned based on "breakout" pattern. I use Amibroker to scan for new highs over last 60 days. A Buy Stop order is placed for the next day slightly higher than the previous days high in order to confirm trend.
http://stockcharts.com/def/servlet/SC.web?c=CLCT,uu[g,a]daolyyay[dc][pc50][vc60]&pref=G
http://stockcharts.com/def/servlet/SC.web?c=PETD,uu[g,a]daolyyay[dc][pc50][vc60]&pref=G
http://stockcharts.com/def/servlet/SC.web?c=NIAG,uu[g,a]daolyyay[dc][pc50][vc60]&pref=G
Some reading on the internet tells me that this method is known as "Channel Breakout", and was pioneered by who?.....Richard Donchian, who as we know helped implement the use of MA's and also inspired the Turtle Method.
Looking for comments, ideas, suggestions, etc!
Take care
BILL