Stock market trading tip

for exit from trade

in case of failing breakout or breakdown

for any swing trading system

This stock market trading tip is one of my personal stock trading secrets. It is based on several years of active trading.

This stock trading tip can be used if you entering breakout trade. Breakout could hold but sometimes breakouts will fail.

Such failure is demonstrated by single reversal candlestick . Price during trading day is trying to move above resistance level but it fails. Closing price is again below this resistance level.

Single candlestick with such shape is know as shooting star (for breakout failure) or hammer (for breakdown failure).

Look to this example of failed breakout of BVF stock:

and what happened few days later.

Do not wait and if you see such negative candlestick providing information about failed break of resistance or support, exit trade immediately.

Do not wait for your stop loss exit. Based on my stock trading knowledge, 95% of such reversals will reach your stop.

So it is much better to leave trade with smaller loss then waiting for your stop loss to be triggered.

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