Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: Re: [CANSLIM] stacking the odds in my favor-buying before the pivot point
Date: Fri, 21 Dec 2001 11:13:22 -0700

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I have been wondering for a while if the fact that these breakout points have 
become so well known expains why there seems to be (seems is the key word, I 
have no empirical evidence) so many failed breakouts.  I have gotten to the point 
where I frequently wait for a breakout and then buy a pullback, rather than trying to 
anticipate it, or get in at the breakout point.  

Regarding failed breakouts, I was reading a daytrading book (The Master Day 
Trader, not to be confused with The Master Swing Trader), and found the following 
passage interesting -

"We teach our traders to be the creators of those market events that others are 
waiting for. If the crowd is waiting for the stock to trade above 40 before they buy, 
then we say 'get the stock up to 40 1/8'.  In other words, make the chart.  ... we 
thought it would be beneficial for you to know how the professionals are playing the 
crowd.  The idea is to ignite the action of your desire by getting to the crowd to take 
your lead.  It can't always be done, but our Master Traders pull it off more often than 
some might think."

On 21 Dec 2001 at 11:36, Dave Squires wrote:

> the W. For an other "base" it's usually the spot where the major resistance
> is overcome. These are obvious points because WON, et al have taught
> breakout buying for many years now and the 90's were a breakout traders
> utopia.
 >     Maybe it's not as hard as I make it out to be, but I have not had

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