Four Day Breakout LE Strategy

By Samantha Baltodano

TL;DR:

The Four-Day Breakout Long Entry Strategy is a way to help traders decide when to buy securities. Traders use the stock's simple moving average and the last four days of trading to determine if the stock is showing a potential bullish trend. If the stock meets these criteria and rises by at least $0.50 above the highest price of those four days, the trader will add a buy order. 

What Is The Four Day Breakout LE Strategy?

Have you ever heard of the Four-Day Breakout Long Entry Strategy? It's a way to help traders make smart decisions about buying securities.

This strategy was created by Ken Calhoun. Here's how it works:

First, the trader looks at the stock's price over time. They calculate its simple moving average, which is just an average of the stock's price over a certain period of time.

Next, the trader looks at the last four days of trading. If the stock has gone up for all four days, that's a good sign. This signals a potential bullish trend.

If the stock meets those first two criteria, the trader will then add a buy order if the price rises by at least $0.50 above the highest price of those four days.

This strategy is based on the idea that if a stock has been going up for four days in a row, and then goes up even more, the buyers are in control and the trend is likely to continue.

Traders can customize the strategy by changing how long they look at the moving average, how many days the stock needs to go up for, and how much the price needs to rise before they buy.

This strategy is just one tool that traders can use to make smart decisions about buying stocks. It's important to remember that there are no guarantees in the stock market, and traders should always do their research and be careful with their money.

Four Day Breakout LE is just one of many strategies that Archaide automates. For a full list of strategies and studies available click here.

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