Stock Upside Trade Indicators, Trailing stops, Profit, Stop limits

Topics

Long Trade
Breakout Trade

Long Trade

Provide long trade information to gauge the quality and profit for short-term long stock trades from 3 days to 6 weeks.
Trade Quality
- An indicator that examines the profit/loss ratio, target potential, and target 1 profit.
- Good trade quality means a good target 1 profit, target potential, a low stop loss and a high profit/loss ratio.
Target 1
- The stock price at which a typical short-term rally might reach is known as target 1.
- Typical stock rallies happen six to twelve times a year and can last anywhere from three days to six weeks.
- The target 1 percent profit is also listed.
Stop Limit (Stops)
- The percentage loss from the current stock price is shown along with the stop price.
- A stock stop limit is a sell order that is put below the current stock price, either mentally or automatically (via a broker), to minimize losses.
- Stock stops trail the current price and can only be moved in one direction, up.
Profit/Loss Ratio
- The stock profit/loss ratio indicator is calculated by dividing the target profit by the stop loss.
- Profit/loss ratios above 3:1 signify higher quality stock trades.
Target 1 Potential
- Analyzes stock resistance areas that block target 1 and assists the investor in determining whether target 1 is achievable.
- If one or more strong double or triple resistance areas obstruct the price target, expecting the stock to reach the target might be unrealistic (low potential).
Target 1 Resistance
- It lists the resistance areas between the current stock price and target 1.
Target 2
- Target 2 is a price attained on an extreme stock rally, which happens just 5% of the time, roughly 1-2 times every six months.
- It is rare for a stock to stay at target 2. Therefore, some investors might sell there to lock in short-term gains.

Breakout Trade

Stock breakouts are quick rallies when a stock breaks above a resistance area. The next resistance will usually be a new high area or a distant region.
Once a stock rises above the upper boundary of the current resistance area (breakout level), it often begins to rally and breakout.
A stock is anticipated to hit the breakout target price following a breakout. Also shown is the breakout's stop price and profit/loss ratio.
The speed at which breakouts rally and hit the breakout target varies.
- The most significant breakouts are true breakouts from double or triple stock resistance areas, where rallies usually last for three to five days.
- Continuation breakouts start from a single resistance area, and rallies have a longer duration of one to three weeks.
Breakouts fall into three categories:
- WATCH A watch breakout stock is currently at resistance, below the breakout price level.
- CONFIRMED A confirmed breakout is a stock that has already started to breakout and is above the resistance area and breakout price level.
- POSSIBLE A possible breakout is a stock that has started to breakout (above its resistance area and price) but lacks bullish indicators and has a mixed possibility of continuing higher.

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Disclaimer: This is NOT investment advice, just general help and opinions. Please check with a registered investment advisor before making any investment decisions. This document may contain errors. Chapman Advisory Group LLC employees are not investment advisors. Please review: https://www.stockconsultant.com/disclaimerpage.html