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BREAKOUT TRADES

 
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allenbones

BREAKOUT TRADES

What charts and time frames and markets are the best?

Mon, 02/18/2019 - 2:39pm
 
boss_hogg

The main difference is that there's less noise and cleaner moves on the higher time frames, but consolidation and breakouts happen on all of them.

 
Allengoldatty

Hey Allen

Great Name :)

The biggest mistake traders make with breakout trades is putting their entry orders to close to the support/resistance level. I understand everybody want';s to get in as tight to the market as possible but, imho, with breakout trades you rather be dollar smart then penny foolish.

Allen

 
RussellK

Identify a trend in H1 or higher then move down to M5 and M1

 
allenbones

Breakout trades for me are not easy. Many times I get a head fake and things going the opposite direction. Possibly treating the five minute chart breakouts are of more value with less fake outs. If I am patient with the GBP USD then breakouts can be very valuable. There always seems to be significant breakouts during the US trading time along with significant reversals of this pair.

 
fsherosky

Breakouts happen at every fractal level. The wisdom is recognizing which has the greater probability. The other question is how far might it run considering the timeframe chosen. At best the ATR can be your guide at least for the next few bars, especially for M1, M5 or M15, in my view.

I agree with Allen in that the M5 chart have fewer fake-outs than an M1 chart. Moreover, a breakout does not have to be restricted to bar high or low. I often use a bar median especially if the most-recent bar appears bouncing off a Supt/Resist line with a wick as a telltale sign.

I sure do miss my range bars from TOS in my futures account, as the entire premise is based on a breakout of a range. So, please act on this O Alveo programmers.

 
skucchal

I see a breakout every time the 12-18 hours structure breaks down...which is a daily trend going up & down like a yo yo. This is best captured on a 5 minute chart. Search for Ichimoku within the forums for more details on this...

 
doug_8

Any thoughts on where to draw the highs and lows of a consolidation relative to candle wicks vs candle bodies. I'm guessing it should be the wick vs the body.

 
burton

allenbones, there is no best. there is only what works for you.

with proper analysis, you will find the confidence to trade break outs in a profitable way.

 
Kevin B

I seem to get caught at highs and lows....going the wrong direction. Glad I have a demo account to learn better

 
burton

kevin, if you're trading the edges, looking for a continuation, and it doesn't happen, then it's time to do some chart work.

- study price cycles, do not trade against the end of a price cycle...it can be costly.