[bathrobe]

Hello,

I have started this thread to discuss different strategies on trading breakouts, I usually miss them because I am waiting for a pullback, which do not seem to happen as often lately in the ES. Hoping any of you willing to post your strategies regarding breakouts would post.

Today was a perfect example May 26 09 attached is a chart.

[Soultrader]

Interesting thread bathrobe, I rarely play breakouts either.... in fact I fade breakout failures, which is often my favorite play.

Only time I feel comfortable placing a market order on a breakout is if the volume 1 bar back is higher than the average of the past few bars. Or if price had been lingering around the top/bottom bracket without falling back towards the other side of its range.

[Tams]

Originally Posted by bathrobe »

Hello,
I have started this thread to discuss different strategies on trading breakouts, I usually miss them because I am waiting for a pullback, which do not seem to happen as often lately in the ES. Hoping any of you willing to post your strategies regarding breakouts would post.
Today was a perfect example May 26 09 attached is a chart.

put on a moving average.

if the low is trading above the MA... think LONG.

if the high is trading below the MA... think SHORT.

if the price is straddling the MA... THINK.




pay attention to the volume.

volume is the gas peddle in a racing car.
price cannot get anywhere without broad participation.

[bathrobe]

Hopefully, to inspire some of you to share more, something I am currently watching is VSA at S/R levels, in the ES you must jump in quite quickly as VSA does not give all of the confirmations in ES as in stocks. I use my own S/R levels and not the ones in the TradeGuider software just to be clear.

[ckait]

Lately breakouts are rare and short lived on ES, last two day's excluded, they were a staple for the last year or so but trading the range has been much better lately. get some MP or volume profile experience and your off to the races.

[bathrobe]

Originally Posted by ckait »

Lately breakouts are rare and short lived on ES, last two day's excluded, they were a staple for the last year or so but trading the range has been much better lately. get some MP or volume profile experience and your off to the races.

I am currently reading Mind Over Markets. But need to switch software to have reliable MP charting. Currently looking into Investor R/T which seems to have an excellent Profile add-on.

[Bear Mtn.]

Thanks for starting the thread Bathrobe as breakouts are, I think, of interest to most people at some level - whether something you experimented with in your early days or still work with as a trade setup currently.

Personally I have experimented with a lot of strategies to try and catch the elusive breakout (indices and currencies) but find consistency to be difficult. I have however found that I am much better suited to trading false ones and fading breakouts. Getting a good signal on a failing breakout (and hence good reversal setup) is twice as reliable as a signal for a potential runner IMO, anyone else got thoughts on this?

[thalestrader]

Hi Bathrobe,

Here is what I'm looking at on the ES right now (see chart). If I were trading ES today, (and I am not trading at all today) I would have a sell stop at 886 and a stop loss at 890.50. Those figures may change depending upon what develops here. But at this momnet (10:18 am EDT) that's how I'd be playing the ES. I would prefer price to tag that 890.50 prior to making a new low at 886 (and better still exceeding 890.50 by a bit and quickly reversing down.

I have to run, and won't be back until the afternoon.

Best Wishes,

Thales