Anyone here trade breakout setup? Which means enter long or short when the price broke through major support or resistence line?
Or just treat the support and resistence breakout as confirmation of our anticipated direction and wait for retracement and enter at swing high or low?
I found that sometimes after a support and resistence breakout the price never come back and continue to move up/down, leaving us no chance to re-enter at swing high or low. So sad to see such huge movement without any position on it.
Yes I do trade BO setups but have very specific way to do it and it is not just entering when a key level is broken. Not something I will cover in here as want to keep this thread on what we have but yes it can be done as well as other things like using price action as continuation etc
This thread has very specific use and purpose and I want to keep it on that to help traders. Adding new things in here will not help them but make them trade more and being unprofitable and trading more will just lead to losing money quicker.
John quick questionā¦ What would some continuation price action signals be. I understand 2brās and bueb beeb are good for getting in on swings but are there any setups for continuations?
One thing i learned for sureā¦do not hurry up as soon as you see a signal wait for confirmation, i really made painfull mistakes in the past because i wanted to get in as soon as possibleā¦there is still much room to pull the trigger, i will wait until daily close and then weāll see on monday
Gees Dude, You labelled it mate. Unfortunately that bar was 9.00 pm Friday Night here . My week was done -I was waiting for a good PA on this one come Monday morning open. Great trade though- I hope you got a handful of this one .
Catch you later
Brian.
I think I can help you learn never to take something like this again with a little feedback for you.
Trying to stop this up move with a tiny little Pin Bar is the equivalent of trying to stop a roaring train coming at you with feather. Okay bad analogy but you get what I mean.
Hereās the thing I actually think this area is good to short and I also think you may have got the direction correct, but when trading against such a powerful move we need more than some tiny little candle. We need to see large candles jumping out screaming that the bears are now taking control and price is only going down.
If we were trading with the momentum in our favour than this little candle may have been okay but we need to take note of the market type and trade accordingly.
Price has now fallen lower from the same area and come Monday it could fall back into support where we may get long opportunities. Hope you learnt something from this trade that will help next time.
True words Viper. A huge part of our new education with Johnathon is to learn to curb our enthusiasm to be in a trade. I am learning to sit patiently , gun primed & ready BUT with finger OFF the trigger until target sighted -LOL .There is tons of time to make a decision on a signal and act accordingly.
Anyway - In response to those charts you posted , I just wanted to post my thoughts for anyone interested.
The AUDUSD shows that the 4hr & Daily both have Bearish vibes. The 4hrly did give a BEEB but it closed right on the Support at market close. May well bounce a bit before deciding on direction. IMHO - the stronger signal is the Daily and this gives a reasonable Pin Bar which also settled on the support. If momentum can break the PB low , it will then be under this support & has a bit of space to move.
The AUD / NZD has retraced back to test a strong resistance area. I will be looking for some PA to let me get back into the downtrend. The 4hr seems to be the better formation in my opinion.
Iām not sure about that daily pin on AUDUSD, well, itās on great place and also rejected 1.06 RN but itās against very bullish momentum and itās also much smaller than the previous huge bullish bar. I wonder others and Johnathonās opinion on this but I donāt think this is A+.
Hi Johnathon,
Whats your opinion on the AUD/USD 1D chart? If that candle doesnāt stick out I donāt know what does! Looking at meadsieās post, he believes there is support there. Would you class this as ālogical supportā or just one of many many small support areas? Also, what kind of market would you call this? Overall it looks like a ranging market that has had a recent rally?
Knowing all the above, do you trade this as a ranging or trending market?
Thanks for your help!
Mud
Do not confuse the real footprints of sellers with profit taking candles. If the AUDUSD will reverse (which most probably is not the case here) you can join the dominant group catching the meat of the trend. Additionally, counter to the trend trades is an acquired talent and they do not forgive as they can easily harm you more psychologically rather than financially. This is of course according to my book.
A simple FACT that will prohibit me of initiating shorts is the BRN directly ahead.
yep it sticks out but there is a few reason why this is not personally for me.
The first is the recent momentum. This market has been going one way and that is up. As we know markets never go straight up or down and they have to rotate. For this to move higher it needs to breathe and consolidate.
The next thing that keeps me out is the support this Pin has formed in top of. You will notice a previous area of boxing/ranging is the same area as the bottom of this Pin Bar. If price has managed to close underneath this it would have been a far stronger signal. Also as Mike alluded to in his previous post price is trading back into the Very Big Round Number of 1.500. It is far better to trade away from these rather than straight back into them.
So basically is someone was to take this Pin it would not be wrong at all. There are a few things that make me doubt and when there is doubt I am not in a trade. With what I have said in mind this week I will be looking for the market to pull back lower or consolidate before moving higher hopefully with me aboard. I am far keener to trade this pair with the trend and go long, than try and force the issue by trading against the momentum. This is not to say it wont move back lower, just that over time playing with momentum in your favour will bring a lot more winners than trading against!
Also there are some far better trades around on the daily charts for the start of this week that you can trade else where. I am not going to go into these here until they have played out as not fair on my members but I promise you win/lose or draw I will recap that trades I am playing tomorrow when they are over.
