The #1 Reason A Fake Breakout Is A Buy Signal
Today as i was sleeping i kept thinking
about an old buddy of mine, who loves
talking about philosophy.
And now today philosophy is all i
think about.
I used to think everybody loved talking
about philosophy
But i was wrong.
Trading is both intelligence and
philosophy combined
You need a strong personal philosophy
to really survive in this market
I made a mistake as i was telling you
about the RSI...
there is something called the
“FAKE” breakout.I first heard of this
concept from Tim Sykes
And then i read about it in a trading book.
Full disclosure..
am primarily a Bitcoin trading expert
I talk about trading stocks
because it's what i use as therapy
also, this is what the community
Mostly enjoys reading about.
And i so use my technical
analysis skills
To share with you what i think
are the best stocks to trade.
Now with the RSI..
the fake breakout actually does not
mean the breakout strategy
Doesn't work
The fake breakout actually confirms
The buy signal
In this case, we are looking at
Home Depot [HD]
HD
Which is in a breakout session
But the mistake i made was to
indicate the breakout at 70
on RSI
Actually the best indicator
should be at 60
Meaning do not buy a breakout
after 60 on the RSI
Even though this will
mean you won't catch all the
swing trades
But it means you will catch the best
swing trades.
Also, note thatHD
is actually related to the real estate market
Seeing this stock
As a buy signal means that
the real estate market is actually
a good buy right now.
This is why am re-recommending
this stock
CAT again.
It also follows the rocket boost
strategy as well which has 3 steps:
(1) The price has to be above the 50 EMA
(2) The price has to be above the 200 EMA
(3) The price should gap up in a trend
This strategy is very good
for SWIING TRADING...
If you want to develop your own strategy
then that's fine.
But if you want a simple strategy that
Easy to follow then you need to learn more.
Rocket boost this content to learn more.
Disclaimer: Trading is risky you will lose
money whether you like it or not
Please learn risk management and
profit-taking strategies.
about an old buddy of mine, who loves
talking about philosophy.
And now today philosophy is all i
think about.
I used to think everybody loved talking
about philosophy
But i was wrong.
Trading is both intelligence and
philosophy combined
You need a strong personal philosophy
to really survive in this market
I made a mistake as i was telling you
about the RSI...
there is something called the
“FAKE” breakout.I first heard of this
concept from Tim Sykes
And then i read about it in a trading book.
Full disclosure..
am primarily a Bitcoin trading expert
I talk about trading stocks
because it's what i use as therapy
also, this is what the community
Mostly enjoys reading about.
And i so use my technical
analysis skills
To share with you what i think
are the best stocks to trade.
Now with the RSI..
the fake breakout actually does not
mean the breakout strategy
Doesn't work
The fake breakout actually confirms
The buy signal
In this case, we are looking at
Home Depot [HD]
HD Which is in a breakout session
But the mistake i made was to
indicate the breakout at 70
on RSI
Actually the best indicator
should be at 60
Meaning do not buy a breakout
after 60 on the RSI
Even though this will
mean you won't catch all the
swing trades
But it means you will catch the best
swing trades.
Also, note that
HD is actually related to the real estate market
Seeing this stock
As a buy signal means that
the real estate market is actually
a good buy right now.
This is why am re-recommending
this stock
CAT again.It also follows the rocket boost
strategy as well which has 3 steps:
(1) The price has to be above the 50 EMA
(2) The price has to be above the 200 EMA
(3) The price should gap up in a trend
This strategy is very good
for SWIING TRADING...
If you want to develop your own strategy
then that's fine.
But if you want a simple strategy that
Easy to follow then you need to learn more.
Rocket boost this content to learn more.
Disclaimer: Trading is risky you will lose
money whether you like it or not
Please learn risk management and
profit-taking strategies.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.