A breakout that failed to proceed past a level, leading to a "false" breakout of that level, is referred to as a "false breakout." One of the most essential price action trading patterns to learn is the false double bottom and double top patterns, as a false-break is frequently a very strong indicator that price may be changing direction or that a trend may soon...
1) What is a consolidation? Consolidation means when the price of a stock or security moves sideways within a range. In this pattern the price makes the same highs and/or same lows. The highs form a resistance level, and lows form a support level. The longer the consolidation is, the stronger the breakout/breakdown will be. When the price is moving within the...
JS-Masterclass #7: Confirmations & Violations In previous tutorials, we have covered the stock selection process and the identification of low risk, high probability entry point following constructive consolidation patterns. Now that we are in the trade, the question comes up what to look for. What makes the price action healthy so that you rather stay in the...
The trend is your friend. This is a very old but true quote. Why is that? • 98% of big winning stock made the largest portion in their gain in a Stage 2 uptrend • Evidence that institutions are buying • Increase probability of success • Know what to expect under specific conditions – point of reference Your goal is not to buy at the lowest price – It’s to...
This is the anatomy of a breakout trade. First, you want to see a large advance in the stock. At a minimum, price should be at least 30% above its 52-week low. Stock will often be up several hundred percent before forming this pattern. Next, you want to see a series of pullbacks - each with a shallower depth than the last. Mark Minervini refers to this as a...
Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal...
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Required add-on (free): NEXT Regressive VWAP Target market: COMEX:GC1! 10R chart Strategy Overview: - Long when price crosses upper band (green) - Short when price crosses lower band (red) - Do not initiate trades in the buffer zone (between the bands) - that is our filter Setting Alerts: Here is how to set price (close) crossing band alerts: open a...
In this post, I'll be taking you through a step by step guide on what the volatility breakout trading strategy is, and how you could incorporate it in your own trading style. Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and...
Price downtrend continuation when new day price open inside the previous trading range. Valid breakout = trend continuation Therefore, we use 1min TF to look for entry. 1. Break market structure. 2. EMA 14,50,200 trend. 3. Stochastic 4. Reverse-retest 5. Stoploss 6. TP False breakout = reversal/rejection Use 15min to find entry 1. Entry after 2nd CS close back...
This is one of the easiest and simple ways to trade forex pairs. I tried to describe the approach on the chart, both H1 and M15 timeframes. ANALYSIS/ PLANNING THE TRADE: - On the "higher" - H1 - frame we wait for a completion of a sideway move (flag/ consolidation), and note, it took 7 days to complete it, after a strong impulsive move down. - Price makes a...
Underlying logic: 1. The price gets rejected from a level repeatedly and forms a major resistance. 2. There is an initial test of supply which absorbs some pending orders 3. The price finds a bottom and some sort of accumulation happens. 4. After the accumulation, the price tries to move back up to retest the resistance level. 5. A bull trap is confirmed when...
Hello everyone , as we all know the market action discounts everything :) I have created this short video to explain How To Trade Breakouts , everything you need to know about this strategy is here. First we got to understand what is a breakout but before u start using this strategy take your time and understand the information well . so what is a breakout : a...
I personally trade breakouts with volume conformations because after the breakout the resistance become support. And that gives me very good risk to reward. Do you trade breakouts? Lets us know what you think about this educational idea in comments!
This is an education based on the LTCUSD chart that I posted today. I have also linked my previous education idea down below where I want to drill down one key fundamental: Participation matters, price DOES NOT. DO NOT get emotional seeing price (low or high), look at the participants to see how many people are buying/selling at these levels. Price DOES NOT...
So in this short video, I show you how to use a pennant style pattern to find a "Possible" Breakout point. This small breakout was a 6% move. Doing this will also help you determine your buy-in areas, so when it hits the support trend line this is the ideal buy-in time. Ideal Buy In Areas . (When it bounces off support trend.)
In this video I cover the basics of how to draw a trendline and trade based off those trendline set. If you have any suggestions, ideas, feedback please feel free to comment and drop a like if you enjoyed the video... Thank You!
How to trade a temporary pullback and a breakout gap? Some security will make a temporary pullback before making a new high with a breakout gap. How to trade a temporary pullback? A trader may be bearish during the temporary pullback formation. A trader may consider going short during this pattern formation or the trader may consider waiting to avoid...