Trading breakout, pullback question

I

iamnewuser911

i have been trading breakouts, mainly consolidation ptterns, triangles, wedges etc. I always wait for it to breakout, retest the SR line, wait for some rejection and enter.

I always get my ass handed to me when it is just a consolidation expansion, I always look for momentum from the swing leg that it is going to breakout from.

What other things do you look for? I always trade the first candle that breakouts and closes outside the SR/TLs, then take the next candle that retests it, with confirmation on the 5 minute. I stick to the hourly chart.
 
iamnewuser911 said:
i have been trading breakouts, mainly consolidation ptterns, triangles, wedges etc. I always wait for it to breakout, retest the SR line, wait for some rejection and enter.

I always get my ass handed to me when it is just a consolidation expansion, I always look for momentum from the swing leg that it is going to breakout from.

What other things do you look for? I always trade the first candle that breakouts and closes outside the SR/TLs, then take the next candle that retests it, with confirmation on the 5 minute. I stick to the hourly chart.
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You must be trading in stock markets. I trade in FX. I use either BB/MA on daily time frame to get an idea whether market sentiment is bullish/bearish and that way I know whether a price movement is a pullback or continuation of a trend
 
victorycountry said:
You must be trading in stock markets. I trade in FX. I use either BB/MA on daily time frame to get an idea whether market sentiment is bullish/bearish and that way I know whether a price movement is a pullback or continuation of a trend
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FX here too. Which setting you use on BB? I've never used any indicators, only pure candles.
 
You are really asking a complex question and much depends if you going to be like most who trade and become 50/50 or if you going to investigate price much deeper as in studying individual swings. There few reasons I prefer to do most of my trading in like Indexes than Currency futures and only now exploring pairs other than US Dollar, but it will take much back testing. When you explore price, you want to find an area of highest volume as this time period has better moves, then you want to study the swings of this period as it differs from hour to hour. If you had a 50/50 chance knowing when price will reverse, you will do better than not knowing at all where the mean is, you can have rules of "Time"-how much time to be in a trade that is in a zone of possibility of reversal and how much time to take a trend trade in this zone, you keep of volume from bar to bar to see when interests stops when price making an extreme. So on any trend trade breakout is the most amount of risk cause from where you get in to where your stops will be at other end of lowest low for uptrend, whereas you get into a trade where you waiting for rock to fall fall fall then get in, risk can be smaller cause you buying near the bottom.

You have much study and backtesting to go.

So EMG = Tradekitten?
 
TradeCat said:
It's all 50/50. You make money one day, you lose another. Learn to accept that. There is no winning system.
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Any trader looking for a System is doomed to fail, in my opinion.
Trading is part art, part science -- it requires skill and intuition and perception and observance that can take years to develop.
:confused:o_O
 
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