Consolidation breakouts

[Turveyd]

Your better off if you find a consolidation which is 50/50 kinda on the direction it'll turn after, getting in low on that consolidation pattern and SLing out cheap on that range failing and hopefully making many times the profit.

The issue is, buying on the break out the break out could be false and your SL is likely going to be a fair distance below at new lows, so less upside and bigger risk.

 

[mario0887]

mr mario0887,
what timeframe charts do you trade from?
how long do you typically hold between entry and exit?
thx

Usually 4h-weekly

 

[padutrader]

how did this TA bs get pushed to so many people.... truly amazing.... at least half the population don't buy the global warming scam... but somehow the TA bs gets to everyone who tries to trade.

i have heard you voice this opinion many times.........TA is vast subject and to call it bs is very presumptuous.
World class traders like Soros have gone on record saying that they use this TA 'bs'.

so forgive me if i am stupid enough to follow Soros rather than you.

and of course this is not a thread on whether TA is bs....so it is totally irrelevant.

 

[padutrader]

If you buy new highs, risk be below support, so huge risk, buy low and risk much less and leaves for more potential.

it is obvious that there are traders who do both.
the successful traders do either one but they keep doing the same thing.
there is nothing wrong with buying new highs.......and taking huge risk......because that increases probability of the trade working but because of this you cannot expect high reward and you have to adjust the reward expected to less.