Breakout: IBUY and ITA (ETFs)

Welcome to this new video. Today I want to show you two very interesting ETFs that are in a breakout pattern. The first one is I Buy. Well, already the name is very interesting but let's look at the chart. As you can see here we are looking at the daily candles. We have a very clear uptrend and look at what happens here. So as you can see, the price was hitting this resistance level one time, 2, 3 here, 4, 5 and finally it was able to break out. Now this kind of breakout to me is quite good because this green candle is quite big. As you can see, the last day there was 1.12% up. At the same time I would prefer if the green candle is completely above the resistance. In other words, I would like to see a green candle that opens and closes above the resistance. Here the candle is opening below and closing above. So it may be a little more risky. At the same time I think the setup is quite good and the resistance was very strong because it was tested multiple times. So if you want to enter this kind of setup, what should you do? Well, what I will do is place a buy order, probably a stop limit above this level above the high and my stop loss will be one ATR below the support or if you want to be more conservative, one ATR below the low. And ideally you would like to see the stop loss to be below the 20 exponential moving average. That is this red dotted line. If this happens, it means that the price is not too overextended so it's more likely that it will not come back. Now the ATR is here. Usually I take an average value. In this case I may take 0.8 and my stop loss will be. Let's say the low, low is 53. You can see here. Sorry here. So it's 5335 minus 0.8. So 52, 55. Okay, so it's around here and as you can see is below the 20 exponential moving average. Okay, now this is the entry price stop loss. To know how many shares to buy or sell, you need to check your rules. You may have a look at my video about that. The thing I wanted to highlight here is that this kind of breakout pattern is one of the possible patterns where you have a strong resistance and then the price is breaking out. But it's not the only one I want to show you Another interesting example that you may consider is another ETF ita. Now what happens here? Again, very clear uptrend, very clear resistance tested many times. 1, 2, 3, 4 5, 6. And what happens here? Look, the price broke out. You see there is this green candle completely above the resistance. But then it went down testing again this resistance now is a support. And after that it bounced back again. And then is testing again this support. So here I will enter above this support the high of this bullish pin bar. And if you see here, the candle is even closer to the 20 exponential moving average. That is a good sign. As before, the stop loss will be one ATR below the support or the low that in this case are more or less the same. So let's take the low is 206. 23. I think ATR is around 2.5. Okay, so if we remove one ATR from the low, we got around 203. 70 something. So is probably just below the 40 exponential moving average. That is also good because the 40 exponential moving average was used here and here also as a kind of support. So it's good to have your stop loss below. Yeah, so that's what I wanted to show you today. These two ETF2 breakout pattern with different features. The first one is just a clear breakout. The second one is a test of the support after a previous breakout. You may consider those as entry points for the next trading day. So with this I would like to conclude. Thank you for watching this video. If you like it, put a like subscribe to this channel to be notified when I will upload new videos and see you next time.