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price action breakout trigger??
kaxx

Member Since Nov 06, 2018  2 posts kaxx Nov 07 at 15:30
Hello,

I am using price action, trading breakouts which happen around support resistance levels. My chart analysis is good I would say, I get the levels right, I see the patterns leading to breakouts followed by a nice long move. BUT I cannot work out entry trigger. I keep getting slaughtered around my entries - never knowing if it is a real or fake breakout. Majority of the time I can pinpoint a start of a big move but I get thrown out at false break if trading real, at real break if assuming its false... And I cannot enter later after the direction is clear because that creates untradeable risk reward ratio. Any suggestions from experienced traders are welcome.

Is it possible to distinguish between upcoming real or false break? If not, what are other methods, like bigger stop losses? or smaller stop losses and then entering again in the opposite direction....?

failuresfx

Member Since Oct 09, 2018  7 posts failuresfx Nov 08 at 07:34
The first thing that you need to do is to backtest your method on past data. You would then have your answer.

ChillBro

Member Since Nov 08, 2018  3 posts ChillBro Nov 08 at 13:20
To know if it is real or fake just wait a bit longer. Maybe go up a time frame bfore entering

romulo11

Member Since Sep 22, 2018  1 posts romulo11 Nov 09 at 10:50
trade the retest after the brakeout, if it doesnt make it the let it go... it will be 100s of better setups in the future.

Penrose2000

Member Since Oct 26, 2018  10 posts Penrose2000 Nov 14 at 11:08
The re-test is what most people like to trade. Short stop loss and more reliable signals. Just take the advise above and don't worry if the price keeps on going and doesn't retest

jamesgwyther

Member Since Aug 05, 2017  85 posts jamesgwyther Nov 14 at 11:57
kaxx posted:
Hello,

I am using price action, trading breakouts which happen around support resistance levels. My chart analysis is good I would say, I get the levels right, I see the patterns leading to breakouts followed by a nice long move. BUT I cannot work out entry trigger. I keep getting slaughtered around my entries - never knowing if it is a real or fake breakout. Majority of the time I can pinpoint a start of a big move but I get thrown out at false break if trading real, at real break if assuming its false... And I cannot enter later after the direction is clear because that creates untradeable risk reward ratio. Any suggestions from experienced traders are welcome.

Is it possible to distinguish between upcoming real or false break? If not, what are other methods, like bigger stop losses? or smaller stop losses and then entering again in the opposite direction....?


I trade similar to this.


I use candlesticks for confirming my entries.

kaxx

Member Since Nov 06, 2018  2 posts kaxx Nov 15 at 07:30
Allright. I`ll try to make some adjustments and see how it goes. Thank you all for your suggestions. Anyone has any recommendations or links on improving execution discipline?

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