The triangle pattern is a popular chart pattern that is often used by technical analysts to identify potential breakout opportunities. However, traders should be aware that the triangle pattern can also be a trap for unsuspecting beginners.
Why the Triangle Pattern is a Trap
One of the reasons why the triangle pattern can be a trap is that it is a very...
Trading is an intricate game of psychology, and understanding false breakouts can be the key to success. Let's delve into COMP, where false breakouts played a pivotal role in recent price action. 📉🚀
Closer look to Fakeout :
Deconstructing False Breakouts
False breakouts are like crafty illusions, luring traders into making premature decisions.
COMP, a...
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...
Regardless of what legendary investors (Like Warren Buffett ) or famous traders do, we always should trade our own strategy.
OXY was fighting with a strong static resistance and finally lost the battle. We have 9 hits to this static line which shows how powerful it is.
False break outs are among the most common traps in trading . Although the concept is very...
False Break outs impose considerable loss to traders. How to recognize a false break out?
To recognize a false break out we should first learn what is a true break out? In fact,simply, Every break out which is not a true one is a false break out.
BTC in it's recent movements shows two beautiful example of false break outs. As shown on the chart, we have a...
Investors should use basic Technical Analysis for powerful decision making. I see it as a challenge to demonstrate how useful knowledge of one simple pattern can be to identify price reversals. Recognizing this pattern and acting on it will save much money and headache!
Both traders and investors need to be on guard for false breakout reversals. Seeing this...
FALSE BREAKOUTS | SPOT/AVOID/TRADE THEM LIKE PRO📈📉
How often have you opened a key level breakout trade, and then the price turned against you? False breakout happens quite often and it is a problem for many traders who buy at highs and sell at lows.
❗️Breakout trading is a fairly popular and viable trading strategy. However, some breakouts often turn out to be...
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...
When the price is near the SnR it is where get it will get tricky...either the price want to continue the trend or reverse?
The false breakout strategy :
1. Timeframe 15min
2. Identify strong valid SnR
3. Draw the zone by pick the wick and the neck.
4. If price breakout and 2nd CS close inside the zone, it is a false breakout and entry position after 2nd CS...
A failed break (false breakout) occurs when a price moves through an identified level of support or resistance but does not have enough momentum to maintain its direction.
Failed breaks may also signal traders to enter a trade in the opposite direction of the attempted breakout. Since the breakout attempt failed, the price could head the other direction.
A ...
Here are some questions I put out to my community group the other day followed by the answers. The reasoning being the move has been annotated on the chart.
Why did price slowly decline prior to NFP?
- Price had to decline slightly before NFP to mitigate the impulsive move created earlier in the day.
- Price had to stop out break and re-test buyers with a tight...
Biko membership understand me
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make your analysis before a trade
Rule #1 Define the London Trading Range
We’re going to use the range definition that takes into consideration only the body of the
candles, excluding the wicks.
Note* this trading rule can be adapted as you get more experienced at reading the price action.
This strategy works because the Asia trading range tends to attract buy and sell stops above
and below the...
A simple analysis of trading psychology that was recently happened on EURUSD.
1. Price broke through the upper trendline, breakout players jumping in and start buying the pairs.
2. The big players(institutional, hedge funds, etc) let the market ran for a while to wait until a lot of bulls entered the market.
3. Most of novice traders are easy to read, so the...
Everything is described on the chart.
Another thing are bull traps. These happen when there is NO retest of resistance and volume may be lacking. You can always have an uptrend without an actual "breakout." Breakouts clarify STRONG uptrends that are likely to continue.
Also, notice how when the volume peeked we formed a doji. This means that a lot of people...
The exponential moving average may indicate an uptrend or a downtrend. It is a trend indicator.
A bullish signal is generated when prices move above the EMA, so make a long. A bearish signal is generated when prices move below the EMA, make a short.
The EMA works very well in long trends, however, does not work well in lateral movements or short periods and in...
