What are you gonna do ? It's hard to buy high in breakouts

[dartmus]

so why not get in before the breakout if you stand a chance at failing anyways half the time.. but you'll get a lower price. I think buying at the breakouts are for gurus to hype. Aside from that, lately i feel like my trading has been poop. Anybody else with me?

Brooks buys the breakout above a signalbar near the low of the range. He also buys the breakout pullback and shorts failed breakouts. He's not your typical guru. He might be the epitome of public domain TA.

 

[Stewie]

Brooks buys the breakout above a signalbar near the low of the range.

I wouldn't consider a bounce from the low of a range to be a breakout. It would have to break below the range I would think to be considered a breakout (or breakdown in this case). Likewise, a break above resistance, or out of a range, I would consider a breakout, and as others have mentioned, these often fail.

 

[pk3r1234]

Honestly, from what I've seen, if you're going to buy a breakout.. 9/10 you're better off waiting for a pullback.

 

[Turveyd]

4% chance of obtaining 9 losers in a row with a 30% accuracy stategy.

Based on pure math, in real life, jumping on what looks to be a breakout but stalls and dies, its turning into a 90% game sadly.

 

[Butterball]

They nearly always fail, I've watched hundreds of them do it

By your logic it's next to impossible for a stock to go from $10 to $100 over time. You realize how unrealistic your assessment is?

 

[wwatson1]

By your logic it's next to impossible for a stock to go from $10 to $100 over time. You realize how unrealistic your assessment is?

They eventually do after loads and loads of failed breaks normally before a trend starts

 

[DrEvil]

It's the CONTEXT stupid.

 

[Butterball]

They eventually do after loads and loads of failed breaks normally before a trend starts

Hogwash.

 

[dartmus]

I wouldn't consider a bounce from the low of a range to be a breakout. It would have to break below the range I would think to be considered a breakout (or breakdown in this case).

I didn't say it was a bo. I said bo above a signalbar.

Likewise, a break above resistance, or out of a range, I would consider a breakout, and as others have mentioned, these often fail.

Yes that's a bo and another example is the breakdown below the range which you described above, but I never mentioned bo's of a range. Brooks doesn't enter on bo's unless they're failed bo's.

After mastering the mechanics of all the setups you can find, then look at trading from a philosophical point of view and determine the core principles of successful trading. If you have more than 1 principle put them in order of importance.

 

[wwatson1]

Hogwash.

Yea because you probably know more than me... Not