ET ghourou Jack Hershey's Seamless Continuous Trading (SCT) provides the answer you seek. It is amply documented here.
The Breakout-Shakeout-Fakeout Indicator
- Thread starter K-Rock
- Start date
Happy comeback, hypostomus.
nononsense
___________________________
"I prefer leading indicators most of all."
champion Jack's only ever oneliner
Not only daytrading, but all time frames. Sometimes you get rewarded for "buying the dip", other times doing so will get you stuffed down a hole. Sometimes "shorting a small bounce" will be rewarded... other times doing so will leave you bleeding.
In the long run, adjusting your behavior to the market's then "current deal" is the key to success... it's also why (a) there's no Holy Grail of Trading, and (b) success with any particular stragegy is always only temporary.
No, it means that there also is a logic behind "fakeouts" and "shakeouts" and that it is possible to trade them profitably with sound risk management.
At least, that is what I do by trading ascending and descending triangles globally.
I like the ascending triangle a couple of posts back, upside structure almost always gives something-As for fake breakouts If a trader can identify markets that regularly move in unison (stock indexes often do) then the breakout or breakdown should be confirmed by the couterpart.
Time and Sales play a big part in confirming those big moves- plus all the other charting techniques- you don't want to see light volume on your breakout, nor do you want to see a counterpart market not following the move. Try " es " and "ym" if one breaks out and the other follows that's amore
I've read about something called openview but i've never seen it- all open orders are viewable , maybe that would help for stop chasing- stop chasers will cause fake breakouts and provide entertainment for those that do it.
If you've had a few bad experiences with fake moves out of consolidations or through resistance levels- maybe (only a friendly suggestion) try letting the move play itself out to the max of the formation's projection or target and then wait for signs of reversal - and simply short the little bugger.
If ya don't wait for a decent entry you might wait longer for a decent exit.
Time and Sales play a big part in confirming those big moves- plus all the other charting techniques- you don't want to see light volume on your breakout, nor do you want to see a counterpart market not following the move. Try " es " and "ym" if one breaks out and the other follows that's amore
I've read about something called openview but i've never seen it- all open orders are viewable , maybe that would help for stop chasing- stop chasers will cause fake breakouts and provide entertainment for those that do it.
If you've had a few bad experiences with fake moves out of consolidations or through resistance levels- maybe (only a friendly suggestion) try letting the move play itself out to the max of the formation's projection or target and then wait for signs of reversal - and simply short the little bugger.
If ya don't wait for a decent entry you might wait longer for a decent exit.
Yeah,
unless ya went broke in the meantime.
PS: even MM can't fix that
i agree with stecve but the market can change during the day and multiple approaches might be required....just because it ends in a mode doesn't mean it started in same.......definitely it can doo all theree.............trend........range........whipsaw........there they are basically........steve is correct but let's not forget to stay very aware of changes tha t might come.......
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Steve said experience;
time will prove whither breakout or fakeout also.
Even though friday/friday week had some good uptrending stocks/downtrending stocks , some made little progress either way.
Candlestick pattern looks like ''+''
Even stranger, not only did some notable stock leaders not make much progress on friday, some made not much progress all week.
I hear what you're saying and I hear it often but does anybody really know what the market condition is going to be in the next hour. Sure, you can say on fed action days or on a holiday shortened session the market tends to trade in a tight range but everybody here has seen a quite first hour followed by a huge dip or move up followed by god knows what else. I guess what I'm saying is market conditions change by the minute. Not saying you can't make money actively trading, but the statement "adjust to market conditions" is just plain vague. A real world example would be helpful though.
Here there's where the leading indicators come handy.
Quote from ang_99:
I hear what you're saying and I hear it often but does anybody really know what the market condition is going to be in the next hour. Sure, you can say on fed action days or on a holiday shortened session the market tends to trade in a tight range but everybody here has seen a quite first hour followed by a huge dip or move up followed by god knows what else. I guess what I'm saying is market conditions change by the minute. Not saying you can't make money actively trading, but the statement "adjust to market conditions" is just plain vague. A real world example would be helpful though.