The longer it ranges the harder it trends

[Laissez Faire]

His comment is too general, therefore making it useless, for instance, define above resistance, could mean many things to different traders

I was being cheeky.

I know that for the ES intraday, you'll quite often have so called fake breakouts. It's just as common, if not more common, than a real breakout that "trends". ES typically don't trend that much. It mostly oscillates. Up and down.

Maybe his comment is true with regards to other instruments or with higher time frames.

But yes, it's far too general and vague to have any real life application in trading. So, I was curious if he was basing it on anything at all. It seems like most trading books and truisms like the one in the OP is based on cherry picking examples that best fits the narrative being told.

 

[eurusdzn]

I remember that I had backtested the Parabolic years ago.
I'll have to uncover that strategy's results.
As I recall, it was one of the better indicators.....

I liked to classify Parabolic indicator as a "with trend , breakout entry , stop on reverse system
if you were going to use that one indicator exclusively. Seems that multiple reverses should be faded as this is chop at that parabolic length and a 2nd longer length indicator should be used to signal a change in price behavioir.
Does not seem to be the type or indicator to work on forex or treasuries but then again you can fit anything.

 

[SunTrader]

Most traders go for the breakout - of the range. My preference is to sit and wait for the failures.

 

[FreakofNature]

Most traders go for the breakout - of the range. My preference is to sit and wait for the failures.

Actually most traders are afraid to "buy high" so they do what you do.

 

[SunTrader]

Actually most traders are afraid to "buy high" so they do what you do.

Actually most don't. But that's ok believe what you want.

 

[syswizard]

Actually most traders are afraid to "buy high" so they do what you do.

The problem is one of determining whether the current market conditions support break-outs or not ? On strong trending days, break-outs are great. In choppy conditions, it's best to fade them.

 

[FreakofNature]

The problem is one of determining whether the current market conditions support break-outs or not ? On strong trending days, break-outs are great. In choppy conditions, it's best to fade them.

Its impossible to tell, it's a game of probability, many spends a lifetime trying to look for clues, best you can do is improve the odds.

Accepting the uncertainty is the first step into success.

 

[Swan Noir]

Accepting the uncertainty is the first step into success.

If after a a few months of trading you still find yourself not accepting the uncertainty go do something else. It is essential that you quickly recognize that there are a fair amount of losers (fewer losers for true scalpers) even if you do it all correctly. It's just part of the equation.

 

[Laissez Faire]

If after a a few months of trading you still find yourself not accepting the uncertainty go do something else. It is essential that you quickly recognize that there are a fair amount of losers (fewer losers for true scalpers) even if you do it all correctly. It's just part of the equation.

Please define fair amount of losers.

 

[K-Pia]

Its impossible to tell, it's a game of probability, many spends a lifetime trying to look for clues, best you can do is improve the odds.

Accepting the uncertainty is the first step into success.

It's possible to tell. But probabilistically only.
Bow do you improve the odds ? Testing Conditionals.
Probability is about conditionals. Which are the Conditions.
However don't fall in love with your expectations.