price action breakout trigger??

Nov 07, 2018 at 15:30
519 Zobrazení
5 Replies
Členom od Nov 06, 2018   8 príspevkov
Nov 07, 2018 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....?
Členom od Oct 09, 2018   21 príspevkov
Nov 08, 2018 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.
Členom od Nov 08, 2018   12 príspevkov
Nov 08, 2018 at 13:20
To know if it is real or fake just wait a bit longer. Maybe go up a time frame bfore entering
Členom od Sep 22, 2018   1 príspevkov
Nov 09, 2018 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.
Členom od Oct 26, 2018   10 príspevkov
Nov 14, 2018 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
Členom od Nov 06, 2018   8 príspevkov
Nov 15, 2018 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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