Breakout Trader
Pimples for blackheads here. Get your pimples for blackheads…
A stock trader who believes in the predictive value of technical analysis so fervently that they base buy and sell decisions around breakout activity. Nancy only buys clothes after they have fallen out of fashion and go on sale at deep discounts, believing that the cyclical nature of fashion will see them back in style eventually.
Once that happens, taking advantage of the spike in popularity, Nancy brings the clothes to consignment stores and sells them for a profit. Nancy is effectively a breakout trader.
Related or Semi-related Video
Finance: What is Breakaway Gap?7 Views
Finance a la shmoop.. what is breakaway gap? well Letterman has one yeah that but [David Letterman's front teeth appear]
here we're talking about a trading pattern like on a stock chart like this
thing where the breakaway gap is a sudden change in trading pattern like
you're walking along just fine and easily recognized in comfy double bottom
pattern like this but then blam the company reports an awesome quarter in [Stock chart dramatically rises]
the stock zooms upward outside of the pattern it goes from here to here and
well now what like there's no pattern yet so what do we do well depending on
your lean prayer might help is the stock heading down now to normalize or up more
because now everyone thinks it's the next Google and wants to own it for the
long run so breakaways go up like this and
sometimes they go down like this but either way they break away from a [Arrow points to stock charts breakaway gap]
pattern and yeah, clearly this was not the next Google! oh well
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