I see a lot of charts that say buy/sell the breakout. Problem is how do you do that? Well this is what In look for.
I am looking for a correction around the trend line (TL). I prefer a break of the trend line. If price breaks the TL and then follows it back in a shallow flag, it is most likely going to break in the original direction. I draw a LTF (lower time frame) TL and enter on a break of the LTF flag.
I need to see at least 3 LTF sideways or shallow pull back candles. If price does not break within 5 candles I reassess as this will mean potentially a larger correction is imminent.
If price pulls back sharply I wait for another strong candle to break the TL and start the process again.
If price goes a short way and starts to correct again I take my trade off for a small profit or move my stop to break even as this indicates it may be returning to the wrong side of the TL.
I put my stop above the last pivot in the structure.
This chart is showing the LTF candles of a break of the 4 hr TL.
Educate yourself, create your own trade plan, Validate your trades with other trader's ideas. Own your trade good or bad.
I am looking for a correction around the trend line (TL). I prefer a break of the trend line. If price breaks the TL and then follows it back in a shallow flag, it is most likely going to break in the original direction. I draw a LTF (lower time frame) TL and enter on a break of the LTF flag.
I need to see at least 3 LTF sideways or shallow pull back candles. If price does not break within 5 candles I reassess as this will mean potentially a larger correction is imminent.
If price pulls back sharply I wait for another strong candle to break the TL and start the process again.
If price goes a short way and starts to correct again I take my trade off for a small profit or move my stop to break even as this indicates it may be returning to the wrong side of the TL.
I put my stop above the last pivot in the structure.
This chart is showing the LTF candles of a break of the 4 hr TL.
Educate yourself, create your own trade plan, Validate your trades with other trader's ideas. Own your trade good or bad.
评论:
A little more clarification on entry and stop placement how I trade the break out.
