I like your trading style man! I'll give you a follow! What variables do you use to determine if its going to break the neckline or that it is just a slippery slope going down hill?
TheTradingBasics
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@breinbanaan, thanks for that. Now this is hard to say. You see, many people use hundred indicators to get it right but i am a little old school and only interested in price action. I need volume and a trend.
I've pointed out some breakouts previously and trading is a numbers game. How much are you risking vs. how much you can take. As for simple breakouts it is only important to draw your trend, wait for 1 or 2 confirmations and enter. Set up your SL and noting really can go wrong. If it goes against you , so what. Next trade. Importance here is patience and wait how things are playing out. You do not need to be the first in the trade IMO.
breinbanaan
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@msatterfield, That's the way I prefer it as well. Thanks, you gave me some ideas!
TheTradingBasics
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@breinbanaan, and remember , with a stop nothing can go wrong.... just don't risk your whole bag .
TheTradingBasics
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@breinbanaan, to add to this.. When an asset finally breaks out, there are high odds of it coming test the bottom again. If you don't get a new low it's a pretty save spot to enter with your proper stop. And then, well just let a winner run and don't sell too soon. All this works on any timeframe as pointed out earlier if you check multiple timefames. Hope this helps.
breinbanaan
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@msatterfield, It does help. I like the simplicity and elegance of it.
TheTradingBasics
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@breinbanaan, food for thought.. Looking at this parabolic BTC move right now there is a chance that you will get some assets for cheap in the coming hours as they retrace and correct. rule of thumb is always 5-10% correction without making the daily trend invalid.
breinbanaan
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@msatterfield, I'll keep that in mind, that is very useful trading information. Thanks, appreciate a lot and I will keep following your updates.
TheTradingBasics
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@breinbanaan, we can all be wrong. the market never does what we want but just set your stop and i suggest to not trade if there is no clear confirmation. The asset will be there tomorrow as well. And focus more on price action rather than indicators. They are all lagging suckers.