The Drive Play – A Breakout Play

This is a pure breakout play. I use Bollinger Bands Width Line to find stocks with low volatility. A note here is that the Bollinger Band Width Line shows the same information as the Bollinger Bands but shows it in a different format, but the same information. I prefer this because it does not cover the stock price with lines, just a cleaner view with reference points.

For this play I want to see volatility at a one year low on the weekly chart and be at a three month low on a daily chart. Here is a example of what I’m looking for:

I still like to play this against my main lists – Tau Longs, Tau Shorts, Near All Time Highs, Near All Time Lows, and best and worst performing groups.

The downside to this play the bad ability for the market to head fake in the opposite direction first before making the true breakout.