Jonathon is watching the stock of his favorite company trade in a congestion area. He is watching
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Jonathon is watching the stock of his favorite company trade in a congestion area. He is watching closely for a breakout to jump into the market. He says he does not want to miss the breakout, but he is cautious not to assume a breakout prematurely.
a. Why do you think Jonathon is sitting on the sidelines while the stock is trading in the congestion area?
b. How might Jonathon recognize a breakout?
c. Explain the trade-off Jonathon is facing about being cautious regarding prematurely assuming a breakout, but at thesametime being careful not to miss the breakout.
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Related Book For
Technical Analysis The Complete Resource For Financial Market Technicians
ISBN: 978-0134137049
3rd Edition
Authors: Charles Kirkpatrick, Julie Dahlquist
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