Frequently Asked Questions

This FAQ is organized by category. Click a category to see the questions and answers.

Subscriptions

How do I cancel my subscription?

We do not provide subscription refunds but you can cancel your subscription at any time by sending an email to webmaster@breakoutwatch.com or you can use the menu and go to Support > Account Management > Cancel Subscription.

How do I upgrade/Renew my Subscriptions?

Choose Account Management from the sidebar and then choose renew or upgrade.

Will you renew my subscription automatically?

Yes, your subscription will renew automatically on the expiry date of your current subscription. You can cancel at any time before then by choosing Account Management from the Support Menu.

Watchlists

When are the watchlists updated?

We start the update process at 5:00 pm EST and it takes aproximately 2 hours to update our database, generate the necessary statistics and calculate the new watchlists. We also cache certain frequently accessed charts and reports to improve the response time for our subscribers.

Sometimes there are delays due to technical problems that can arise from various sources, but the new watchlists are usually available by 7:30 pm EST.

If you access the site between 4:30 and 7:30pm EST, you may find response time is reduced due to the update activity taking place.

Stock XYZ was dropped from the watchlist today. Can you explain why?

The simple answer is that the stock no longer meets the criteria for inclusion in the watchlist.

On each watchlist, the \'Methodology\' tab explains how stocks are selected for the watchlist. Some common reasons for being dropped from the watchlist are:

Alerts

Stock XYZ has a volume of more than 150% average daily volume today, why didn't I receive an alert?

The breakout price (BoP) wasn't reached even though the volums was high. An alert is only issued when the breakout price is reached regardless of volume.

How can I receive alerts on my text messaging device?

Go to Account Management > Update Account and enter a second email address.

Because cell phones are usually restricted in the number of characters they can receive in a message, we automatically recognize that the message is being sent to a telephone number and send a shortened version of our regular alert message.

Can I restrict the email alerts to be for only those stocks that meet my filter criteria?

Yes. Go to Account Management > Update Account and check the "Send email alerts only on stocks that match my stored filters" radio button.

How do I choose which stocks to buy out of all the alerts I receive in a day?

The best way to choose among alerts is to have already chosen which stocks you’re willing to pursue when and if they attempt to breakout. This is reflected in Approach #1 in our “How To Use the Site” tutorial. When the market is strong and many stocks are moving, you really have to have a plan before the market opens. Next is to have a plan if that breakout attempt turns out not to be on strong volume by day’s end and/or if it closes below its pivot.

Industry Analysis

How can I see which industries are moving up in the rankings so I can anticipate future leaders?

To display this information on any Industry, simply go to the Industry Analysis menu item and view the industry charts for any industry. You will be able to visually display the change for any of the 215 industries.

CANSLIM Evaluator

Your RS ranks do not agree with IBD's. Can you explain why, please?

Our RS ranks are calculated using the same methodology as IBD, but we have fewer stocks in our database as we don't include Canadian stocks, which they do. This results in some minor differences in the rankings. Provided you always use one set of ranks or the other, this is not something to be concerned about.

Breakout Report

How can I use the Breakout Report to improve my investment returns?

Many stocks that breakout will pull back to the region of the pivot within a few days after their initial breakout surge. Provided they have not dropped below the pivot and are within 5% of the pivot price, then they may still be viable candidates for purchase, although they will not be on our watchlist.

The Breakout Report provides a means of identifying these stocks that offer what we call a second chance entry point. They are shown on the report as "In Range - Above BOP".

I purchased a stock based on an alert and then saw on the Breakout Report that the breakout wasn't sustained. What should I do?

On occasion, a stock will surge early in the day, but the volume may fall slightly shy of the 150% required. This stock will trigger an intraday alert but will be classified as a "failed breakout."

Option 1: Purchase the stock based on the intraday alert and watch the action on the next day or two before making a decision as to whether to stay in the stock. The strength of the market, the volatility of the stock itself and the strength of the base will have a great deal of influence on this sort of decision. This is not something a computer algorithm can distinguish, so is very much up to the trader's experienced eye. The sell stop in this case can be up to 8% below the pivot if you wish, but good technicians will be able to spot trouble even before this sort of loss is triggered.

Option 2: If an alert is triggered early in the day, the projected volume is less reliable than projected volume calculated late in the day. Before making a decision to buy based on a breakout attempt alert, wait until at least mid-day or later. That allows one to see more of the day's action. The downside to this strategy is that you're less likely to catch the stock very near the pivot, the "best" entry point, and in the worst case, it may surge well beyond the 5% limit by the time you "give it a chance to prove itself."

Option 3: Purchase a partial position based on the intraday alert and add only if it proves itself later in the day.

Option 4: Purchase based on the intraday alert, but sell immediately if by day's end, the stock does not close with a "confirmed breakout" classification. This is one of the most conservative approaches, and is probably the easiest solution for those that are less comfortable with technical analysis subtleties. The downside is that there will be a lot of round trips into and out of stocks.

Option 5: Make all trades based on end of day action, purchasing only those stocks which are classified as sustained breakouts. This is by far the most conservative approach. The downside to this approach is that, as with option 2, missing a breakout intraday that surges well past the 5% limit will always represent a "missed opportunity." For the most part, that also means you miss some of the very best (strongest) breakouts. In this case, the trader would have to wait until the stock pulls back to within 5% of the pivot on light volume in the next couple of weeks, or wait for it to rebase before entering. The advantage to this approach is that you are less likely to be whipsawed immediately when entering a position and you make far less "round trips" of enter/exit as you would with option 4.

As you can see, there is no definitive answer to your question and it's the very thing that makes it difficult to measure "performance" of a CANSLIM methodology. The bottom line is that each trader has to set their trading rules based on personal preference, risk tolerance and their level of expertise.

Chart Selector

Can I sort the output from the Chart Selector by column like the watchlist display?

No, that feature is not available.

Account Management

Can I add a second email address at which to receive alerts?

Yes. Go to Account Management > Update Account and you can add a second email address to your account. You will start receiving emails at that address on the following trading day.