This is another post adding to my recent articles on Using An Intraday Breakout Strategy.

On the chart below, you can see a couple of the same characteristics that I frequently mention in my articles. The first is that between 9:30 and 10:00, there were higher lows being made which was forming an Ascending Triangle.

I just so happened to be watching as the stock was forming this pattern, and in anticipation of the pattern completing, I was able to enter a long position at $5.33 at the bottom of the trend line prior to the pattern being complete. Unfortunately for me, I sold as prices approached the upper resistance level at $5.40.

Still, this is a classic example to learn from. Higher lows were being made and once a breakout from the triangle pattern occurred, volume began to increase. Then, as momentum continued, prices again made a second intraday breakout. This time moving 4-5% higher within minutes.

Shortly after 11:30 you can see the heavy volume increase and spike in prices. I’m not sure what happened here but for the purpose of this post, I am mainly concerned with the morning pattern. The only way to catch the 11:30 spike would be if you started at your computer screen for several hours at a time. It can be done, just not when you have other things going on.

If you happened to have seen a spike like this occurring, a nice breakout entry point may have been at $5.65 upon reaching new highs for the day on strength. Of course the best entry here would have been near $5.40 prior to the spike. This was the previous resistance level from the early morning so it could have been anticipated with a low risk entry point as well. That’s for another post though.

The ebook is 60 pages and contains great information about what happens during a Deflationary period, what to expect and how to prepare for and survive during these tough times.

Anyone following my site for a while now may remember that this free ebook was offered about a year ago, before the markets made their big moves lower. Now, the ebook is being offered again and the market seems to be at a major high again, ready to move lower.

The new article can be read here: Free Deflation Survival Guide to find out more details or you can
download your copy here:

This may be the perfect time to start thinking contrarian as many people are thinking about Inflation, when in fact Deflation is what they should be worried about.

Wanting to learn now, is a lot better than thinking you know everything and in this case, using Market Orders all the time.

That is, until you have an order filled much further away from the then current trading price and lose a lot of money.

That’s when you may come to realize (hopefully) that there are other options available.

Personally, I use a “Buy Limit Order” on all of my trades. It comes natural to me now and I don’t even think about it. In my view, the only advantage of using a Market Order – that being the opportunity to get filled immediately, is not worth the risk of getting an adverse fill. Besides that, I don’t usually trade low volume stocks, so I can get filled immediately anyway using a “Buy Limit Order”, without the risk.

I just added a full page article under my Stock Trading Risk Management section titled: Buy Limit Order – Stock Trading Order Types. I go into more detail in this article and provide some examples of how this type of order can help minimize the downfalls as compared to using a Market Order.