Using Shake Outs To Your Advantage

1) shake outs can cause the buying pressure needed to breakout
2) if you notice a shakeout it can be a good play to take advantage of it and get an entry
3) you know there are many buyers when a shakeout occurs as traders who were stopped out and more are buying back in

1. Shake outs create momentum
2. Focus on Volume, high volume mean high interest
3. Psychology is the key factor

1. Being shaken out is not necessarily bad if you understand that this action may create momentum for yourself and others to buy back in
2. Always take some profits when you can to minimize risk
3. Trade volume can be an extremely important indicator for trades

1. when most people get shaken out will want to buy back in, this creates momentum
2. after a big gap up, take profit, it wont always sustain
3. tight inside days good indicator of coming movement

1. Most people that are shaken out will want to buy back, creating momentum
2. Volume is a strong indicator of momentum
3. Can be profitable if caught at the right time