Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

katya1

A False Breakout, How to Identify It?

Recommended Posts

Many who trade the breakthrough strategy would better understand is break real or false. If you see in advance false break, you can’t open a position, or play in the opposite direction.

The volume can show how the breakthrough may be present. The point is very simple. Extra volumes at the level of the break significantly increase the likelihood of truthful breakthrough.

Consider these examples:

5aa7126a74915_Exam1.thumb.jpg.2bb02892f5ce34600d68c337ae552751.jpg

5aa7126a7c4ad_Exam2.thumb.jpg.e4ec6334df4a5c72f50bf32fc7bb308d.jpg

5aa7126a83f51_Exam3.thumb.jpg.8c908731237e486fa4791a4e4bcba287.jpg

Share this post


Link to post
Share on other sites

I pefer to consider how decisive the candle is when looking at the market sentiment at that exact moment. I think it's a more reliable source of information.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • EU is still trading in a range. I'm heading out of town tonight and won't be back until Sunday evening. 
    • Came back to check on price after an hour of meditation, EU came within 3 ticks of target... Fascinating the ego brings up the story of betrayal, as if the market was out there to get me. I then reminded myself cool, this trade went over 2R. Even better yet, I acted consistently with executing my trading plan! Let the market do its thing. 
    • I took this limit long on the retest of the earlier 123 and support area. Target is near top of the zone. I notice that my target needs to be more mechanical in the sense that I may be influence to have a more/less aggressive target based on the results of the last trade. I have collected some modifications for the next batch of trades. 
    • Correction: the GU made it to 45 out of a 49 tick target. It was a 2.5R full target, not 3R. The EU long trade was 7:15am EST. I will refrain from getting up even earlier with the goal of not missing the next one. I notice after each trade, the mind, with the desire of wanting to experience a win, subtly pushes me to deviate from trading plan. My main concern with this set of 20 trades is build a greater sense of consistency in my execution and self trust. I realized the outcome of each individual trade absolutely does not matter. If I started to care about it, I am assuming that somehow I am responsible for the market's movement, which I am not. I am only responsible for following my trading plan, which can be adjusted after the 20 trades based on the stats I collect. 
    • GU closed for -1R. It made it to 2.8R but not quite the 3R. There was also a EU long trade that happened about 4:15am EST. FOMC is over now so let's see if we can get a nice trend setup today.  
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.