FT stands for follow-thru. Since 80% of Bo attempts from ranges fail and price trades back into the range within 5 bars I prefer to see a BO attempt succeed then enter on the PB for a second or third leg up. For instance I would be shorting on any of your points above and averaging down short betting the BO will fail. I would not consider going long before your last bar on the chart. To my thinking the BO didn’t happen until 5 bull bars after your C circle and I would then want to see a PB that holds the gap between the low of last bar in the PB and the BO point at the top of the range then I would go long on a H1 (High one) or H2 after the PB. That is the best I can tell as you didn't show any more bars but that last bar on your chart was a FT bar.
Daytrading: Do you prefer the closest, average, or highest resistance on breakout entries?
- Thread starter Bugsy
- Start date
Now, I too, would go long at the bottom of the range ...even average down long and scalp out in the middle or top of the range. But I would not go long at the top of the range without a BO that had FT as 80% of BO attempts out of the top or bottom of a range FAIL and price goes back into the range.
It depends on volatility and spread of the stock but in my experience due to trading mainly tech stocks, A) higher would be the definitive answer. When trading goog/amzn I need to be more preemptive and watch index correlation closely or else I'll be risking buying at a poor spread.
I use none of these methods since they are stupid and have no edge. My Forex BO system was rated number out of 9000 tracked systems. However maybe it was a trick question.
Well what was it rated? 8999 out of 9000. ROFLMAO
It was rated number 1, and I get paid over $ 10,000 just to let some people trade it. As proven by my tax payment to the IRS on the 1099 that the site submitted to them.
I doubt anyone ever paid you anything, plus I doubt you can read English.
Most TA is garbage, and anyone who uses the methods in this thread can't trade their way out of a paper bag.
Feel free to read my free trades I posted before the fact with charts in other journals for those that want to learn to trade.
I wouldn't consider breakouts (or breakdowns) TA, since when one looks for entries in this strategy they are typically looking at (or either the result of) volume and price action correlations/divergences between the security and their corresponding pair; typically the index.
You mentioned forex so you could be right in this area as that area of trading isn't my expertise. But for stocks, it's rare that they just trade in tight narrow horizontal channels. There is usually a clear breakout/down from an initial early day channel that can last a few hours up to most of the trading day. Even false breakouts/downs can be advantageous for experienced traders who have adequate buying power.
If you are trading at a Prop firm with $ 1 million buying power, then trading stocks is fine. I see no reason to do it professionally without backing.