 Well everybody, it is Swing Jam with Xtrades and today I want to make a video about breakout stocks versus pullback stocks. So I don't have really seen this topic cover a lot in the server and I think it's a very important one for newer traders to realize that all stocks are not created equal. Some are going to be very easy to trade in breakouts and those are usually tech stocks or high growth stocks while other stocks are meant to be back at pullbacks the breakouts aren't as clean, it's more choppy, you know the father isn't as good and these are usually more industrial or metals type of assets. You know it's not always as clear-cut as that but it's important to realize what type of stock you're trading before you trade it. So for example, Zimit the IPO stage was a pretty good breakout stock. He had some ranges with a breakout, ranges with a breakout and as time went on these breakouts start to you know not work as well and they start to become more choppy and not as reliable and especially past this September top I mean most of these breakouts got one or two follow through days and then this immediately rejected. This is a very hard stock to trade for breakouts and it's not really going to work for you. If you compare this to something like LEU, I mean this is a this is a uranium company, but once it breaks out of the range I mean these rallies are really clean and there's plenty of examples of clean breakouts from nice tight ranges. These are the type of stocks you're trying to buy as a breakout trader. Usually these are very linear, they're very easy to read, they're not very choppy. Something like WOLF is not a breakout stock. This is very very choppy, it's hard to trade. As a breakout trader you're probably going to get stopped out. Very easy for someone to get washed out. So understanding which stocks you should be playing and to kind of correlate with your trading style I find is very very important. The next aspect that it relates to breakout versus pullback trading is market conditions. So for example you look at saying like ASAN, you know during the second half of 2021 this saw a lot of rotation and breakouts very clean. We had one down here at $30, another one at $37. This one wasn't as clean but it still had some good follow through at $86. And finally once we got towards October and November specifically for later half of the year we saw that a lot of these breakout trades weren't working. So in stocks like ASAN when you see this trend of having a lot of you know four, five, six good breakouts and then they start to fail that's a very good sign that most likely there's gonna be some sort of a larger market shift. You can even look at selling like OM right. We had a nice range here, we had the breakout and then we had another failed breakout and a quick pullback. You know the same thing could be said for selling like net. Extremely high relative strength stock tried to form sort of a range and wasn't very clean and started making lower lows. A lot of these you know high growth stocks started topping in more of the November, December range giving some indication that there's market weakness. So correlating general market conditions along with the type of stock you're trading is really going to give you a large edge. The last thing I want to cover is something like DE. This is more of a more special and nuanced situation. This is a type of asset it's going to have let's say four to five years of consolidation and then one to two years of rallying. So we really had a range from 2011 to 2016. We had a two year rally 2018 to 2020 and then a one year rally. We get to the same type of action in gold. We had a large range from 2013 to 2019 and we had a large rally and then you know the mid of 2020 to around you know start of 2022 and then we had it where you know we're probably gonna have another rally here than my opinion we'll hit at least 2200. But these are some things you should be considering you know when you're taking breakout trades versus pullback trades and having the stocks in general market conditions line up with your trades and this should greatly help improve your win rate. So I hope you guys enjoyed the video and have a great trading week.