trading on a breakout

[murray t turtle]

What about if you fade BO’s in a range market?

%%
CAN work well;
+ some call those barbed wire ranges or slop/\ chop trend.
A lot of it depends on how one measures it.
WITH stock markets going up 75% of the time + down 25% of the time\ have to work pretty hard to find 50% failure on breakouts/im sure it[50% failure rate] could be done on smaller time frames...........................................................................

 

[Tradex]

So, simply pulling up some general statistics some author may have produced some time in the late 90s seems very gullible and misinformed.

Right, I forgot that you have a PhD in breakouts.

 

[Tradex]

WITH stock markets going up 75% of the time + down 25% of the time\ have to work pretty hard to find 50% failure on breakouts/im sure it[50% failure rate]

It depends on how you define a "successful" breakout.

 

[murray t turtle]

It depends on how you define a "successful" breakout.

%%
True;
profits, enough to take them or ride profits + then take them.
DDM looking better than QQQ, qld/this month........................................................NOT a prediction, not a false breakout.

 

[Tradex]

profits, enough to take them or ride profits + then take them.

Generally speaking, a good breakout should give us at least 3 times the stop, and much more if we trail the entire move.

 

[CopperOverGold]

Generally speaking, a good breakout should give us at least 3 times the stop, and much more if we trail the entire move.

I’d love to hear your thoughts on trailing stops. And exits overall as there are many ways to go.

 

[radex78]

Maybe obstacle trading breakout is when occurs false breakout, it's mean when the area is already broken but not a long time later, the price goes back to the level, if trader already enters may be dragged in floating.

 

[longandshort]

Professional investors build strategies that derive returns from illiquidity or provisioning liquidity premia. These trades usually supplement a primary strategy (e.g. value or growth seeking).

If you see an opportunity for a breakout to occur (thinly traded stock plus surge of readership) you buy and then sell into the breakout. If you see a breakout occur, fade on highs intraday unless there is material information.

Most professionals will trade these only on covered securities because measuring sentiment or materiality of information requires a high level of familiarity.

 

[Master Pu]

is it better to take the trade right after the breakout occurs, or to wait for the stock to pull back/consolidate and hold above the former resistance?

I don't like breakouts, I prefer to watch p/a behavior near significant levels and either buy support or sell resistance levels.

 

[Tradex]

I’d love to hear your thoughts on trailing stops. And exits overall as there are many ways to go.

Excellent question.

As far as my trading systems are concerned, the best way to trail a strong uptrend/downtrend move is to use a simple moving average, in conjunction with a Three Line Break technique (google for it if necessary).

Cannot say more, do your own research...