Breakout Trading - What type of momentum to measure continuation?

[newbietofx]

Recently aquired a breakout indicator that claims to be 70% accurate. But I’m having problem getting accuracy on whether the breakout will result in reverse or will get push more.

Beside the fact that MACD measures divergence and ADX measures strength I do not know what else is used to measure the strength of the market after breakout.

MACD histogram doesn’t reflect well especially if the histogram appears on the same side as the breakout. But there are occasions when the histogram is below and shrinking but the market still continues. There is also time when this occurs and the market stall and reverse.

Support and resistance. If after breakout. The high of the breakout candle gets engulfed by another candle the trend might continue.

So seniors pls advise an indicator that tells me whether after breakout will price continues or will it reverse?

Regards
David

[gp00053]

Recently aquired a breakout indicator that claims to be 70% accurate. But I’m having problem getting accuracy on whether the breakout will result in reverse or will get push more.

Beside the fact that MACD measures divergence and ADX measures strength I do not know what else is used to measure the strength of the market after breakout.

MACD histogram doesn’t reflect well especially if the histogram appears on the same side as the breakout. But there are occasions when the histogram is below and shrinking but the market still continues. There is also time when this occurs and the market stall and reverse.

Support and resistance. If after breakout. The high of the breakout candle gets engulfed by another candle the trend might continue.

So seniors pls advise an indicator that tells me whether after breakout will price continues or will it reverse?

Regards
David

Unfortunately no such animal. Your best bet is support and resistance lines. Nothing will work 100% of the time. Here’s a video that’s not me, and I’m not vouching for or suggesting directly or indirectly any product or service they trying to sell.
Having said that this video is great presentation on break out trading. He calls it the London but it works on any market session. Best no question on London. YouTube

Another indicator that would be good for you if you’re using MT4 is Swing Hi and Swing Low, you can find it on their website. Hope that helps
Gp
Drop by and say Hi on Skype forexgp00

[TheLastBear]

Recently aquired a breakout indicator that claims to be 70% accurate. But I’m having problem getting accuracy on whether the breakout will result in reverse or will get push more.

That says it all to me. Why waste time/money and something like this? 70% accuracy, but not accurate sounds a bit like an oxymoron to me.

[3xfx]

Its much better an enjoyable finding your own way of trading. Practice to see what works for u, Ask question’s on here when u read something or watch a video. It takes time but you will find what u like after awhile. Chances r that it wont be the first or fifth way u will settle on. Heck Im trying to learn something new I never thought I would try to incorporate into my trading with help of member here. You will always evolve.

Now secret plans out there if there were it wont be sold.
Welcome to forex and your first initiation.

And this is not saying Im expert forex trader just things learned over time.

[Arbitrager_on_Acid]

So seniors pls advise an indicator that tells me whether after breakout will price continues or will it reverse?

I am of the firm belief that no man knoweth the day nor the hour nor the price nor the market wherein the profit will come.

The best you can do is enter on the break and exit with a profit or a loss when the price confirms that there either is no trend or the trend is over. How do you confirm that? There are many ways, each trader chooses his own.

-Adrian