Reggie then calculates a breakout point, a low risk point of no return. The idea is that when a stock's price reaches this inflection point it is time to make a trade. When and or if a stock trades up to or down to one of Reggie's trade entry prices the stock is telling us that it wants to do something different than it has been doing. A stock must make a strong counter trend move to reach one of Reggie's entry prices. The strong move tells us the stock is breaking out of the old pattern or trend and starting a new trend in a new direction.
Volume is monitored and it is used to confirm a breakout move.
High volume tells us that other traders are committing their precious trading resources to the price move and gives the move credibility. This increases the probability of follow through and improves the odds of a profitable trade. The best time to be in a stock is when it is on the move. Reggie finds stocks that are in position to start a a new move. Our Tactical Trading alerts tell you when it is happening.