MrRenev

Trading styles. Part 3/5. Trend continuation breaks.

FX:SPX500   S&P 500 Index
Buying breaks / continuation in bull markets this strategy is usually a little "slow", but often winners the problem is it can go back before going up so a tight stop loss is likely to get hit often even when being right, in bear markets moves can be violent.

Those I can think of

* The triangle / flag pattern / falling wedge

These have always worked and still do. Pretty decent. Works really well on Bitcoin up to now.
This is my first post on trading view, I was still an innocent young buck (just kidding this was barely over 1 year ago)


Another one on Bitcoin , I bought before the break in the green area at the bottom because I just knew (market was extremely manipulated at that time & they showed me their hand), but a regular break buy at 9750 with a stop at 9150 (below swing low) and getting out at 11000 after resistance was rejected was still a reward to risk ratio of 2. Those continuation patterns carefully selected are wins at least 50% of the time. You do the math:


An example on gold


* The inside bar break

Some examples




You know what asset high timeframe trend following inside bar breaks have worked great with?





* Supply & Demand area breaks

I really do not know if this works. Literally 0 experience.
I do not like it. The idea joining the low timeframe trend and going against the higher timeframe one.
Not my thing. It may work, it certainly works under the right conditions and everything.
Going to throw some examples but these are just that.


(Shorted at the top btw - chart is reversed)


Here is a similar one on copper , retraced in supply area, then broke above actually pretty strongly but did not go very far and reversed:


(Shorted at the top btw)


My favorite stock here:


Bitcoin again:


Stock market 2016:


Such a strategy (buying supply area breaks) might work. I believe the odds are in your side if you don't or at worse just miss out, don't go buy once we are below demand area of course, but not short either; And vice versa.

Novice buyers buying because their 6 month lag indicator tells them too? LOL.


Ok these are the 3 types I know. I think this is it?

The head and shoulder being a reversal kind of break it is not described here.
"When the majority of people extrapolate the past in a bull cycle and expect the future to be the same, they usually are right and we are pretty early in the cycle"
- Warren Dalio
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing House Rules Moderators Website & Broker Solutions Widgets Charting Solutions Help Center Feature Request Blog & News FAQ Wiki Twitter
Profile Profile Settings Account and Billing TradingView Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out