I find it is much easier to know when a trend is [close to]ending than when it is starting.
The thing about trading breakouts...
- Thread starter trader99
- Start date
you may be putting cart before the horse if you are focusing on break out.
the horse is the trend.
determine the trend first.
then go with trend signals and fade countertrend signals.
cant find the trend?
then sit. your cart will not move unless you find the horse.
trading is simple.....
the horse is the trend.
determine the trend first.
then go with trend signals and fade countertrend signals.
cant find the trend?
then sit. your cart will not move unless you find the horse.
trading is simple.....
Market is ranging most of the time. But when it's trending, i've found breakouts and their retests to be one of the most successful trades. Good risk-to-reward ratio and VERY high hit rate. But you need a way of figuring out when the market goes from chop into trend mode. That's the hard part.
Determine market conditions, then trade accordingly>
- bull trend: buy the dips, take advantage of bear traps, buy breakouts and their retests
-bear trend: sell the rips, abuse bull traps when they happen, short breakdowns& retests
-chop: mostly sit on your hands, but set limit orders to get filled at the extremes of the range(fade breakouts), take advantage of fake breakouts
If you manage to determine the conditions correctly, then stay disciplined and trade as per your rules, the odds are on your side. Do more of whatever works.
Sounds simple
ps This is an advice to myself too
Determine market conditions, then trade accordingly>
- bull trend: buy the dips, take advantage of bear traps, buy breakouts and their retests
-bear trend: sell the rips, abuse bull traps when they happen, short breakdowns& retests
-chop: mostly sit on your hands, but set limit orders to get filled at the extremes of the range(fade breakouts), take advantage of fake breakouts
If you manage to determine the conditions correctly, then stay disciplined and trade as per your rules, the odds are on your side. Do more of whatever works.
Sounds simple
ps This is an advice to myself too
Hey padutrader
I'm using Bookmap to decide if the buyers/sellers are losing power. BTW if one trend ends so a different is starting, unless a stall is happening before, no?
In Bookmap it's easier to notice the trend change. It shows graphically how the buyers bids and the sellers offers get absorbed, which implies on a trend change.
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The biggest breakouts never pullback.
Do you Know which breakouts are the biggest before it happens ?
Sometimes yes, but not all the time, which is why being selective could backfire.
exactly. and smaller size to compensate for the wider stop.
then trading breakouts is like whatever.. just another trade.
1 lot es traders will take a breakout with appropriate stop 25 points away
and wonder why they are so panicked, shaking, sweating and, throwing up
on any pull back. lol
If you don’t know, the market is about probabilities,,,, “sometimes” means 50% -50% ? If you catch the biggest moves only with your “Sometimes” strategy you are on your way to make millions in no time..!!
Breakout works for me. If you pick shitty stocks to trade on breakout. Then it is on you.