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Breakout

The Heiken Ashi Algo Oscillator (Range Trading technique)You're watching this video because you keep getting stop-hunted. You feel like every time you enter a trade to the market it immediately goes the other way and you get this little spike out the top or the bottom of a candle that knocks you out of your position and takes out your stop loss. This is most likely due to Market manipulation on your charts which is making you think that price is moving up or down and instead you have just entered a trade at the beginning of the consolidation or distribution phase. Don't worry you're not alone this happens to a lot of novice and intermediate Traders. I really wish there was an indicator that would tell you as soon as you have entered into a ranging Market but usually you can't tell that until you've looked at your charts for a couple of hours and realize that price hasn't moved above or below a certain number. Well you're in luck because I just finished coating an indicator that will tell you that you have entered into a consolidation or distribution phase at the beginning. In today's video I'm going to show you how to do range trading using the Heiken Ashi Algo Oscillator available for free on Tradingview. Usually after price makes a big rally to the upside or to the downside you can expect that price is going to go into either consolidation or a distribution phase. On your charts this will look like where price runs flat for what could be an extended period of time. The rule of thumb is that after a very strong move to the upside or downside the consolidation period can be lengthy. If there is a short rally to the upside or downside then the consolidation or distribution phase would be a short period of time. So lets get into adding the indicator, and setting up your chart to trade in ranges using alerts from the Heiken Ashi Algo Oscillator. Open up TradingView Go to your indicators tab and search for Heiken Ashi Algo Oscillator and add it to your chart. In the settings make sure you've turned on the following: Range Range Break Long Range Break Short Support Levels Resistance Level There are a number of other alerts available in the Oscillator but we don't need them for this purpose. And as always, use the default settings. When you get a RANGE signal (Which looks like a line between two left and right arrows.) You want to grab your Parallel Channel Tool. You should have already set your support and resistance levels when you opened your chart for the day so look left of your candle. There should be a support or resistance alert right there. On my chart I have a Resistance level. So I'm going to use this line at the top of my parallel Channel Take your parallel channel tool And place it on that support resistance level just left of the candle . I'll drive it far to the right and make sure it's straight and click again. now drag it down to the closest support level and click again. You have just drawn your range. Also on my chart you can see here that I have 1 range indication and then just after it I have a second range indication. When you get a second one you disregard the first one because price has now entered into a new range. What you are looking at is the Centerline of your range. In this particular instance the first Range Line is lower than the second one so to correct this I have to take the top of my parallel Channel and drag it up until the dotted line is at the close of the candle with the new Range signal. do this by driving the top of the box and not changing the bottom of a box. In this case you can see how the bottom of the parallel channel is still sitting on my support and resistance level to the bottom but the top of the parallel Channel is above my support and resistance level And this is fine. The way you use this is by imagining your parallel channel has three levels. Level 1 = The top line Level 2 = The midline Level 3 = The bottom. Also you must respect any Support and Resistance levels traveling THROUGH the Parallel Channel What you are looking for is any candle that closes its majority size across one of these lines here are some examples: Please watch the video for a perfect visualization of how to do this. Directions of Trades in Range Trading. Follow the arrows. You ONLY trade to the INSIDE from the top or bottom of the channel. You also trade either up or down FROM the midline, depending on the majority close of the candle. Again also respect your support or resistance levels when a candle is crossing them.
Education
by CoffeeshopCrypto
7
Anatomy of a Breakout TradeThis is the anatomy of a breakout trade. First, you want to see a large advance in the stock. At a minimum, price should be at least 30% above its 52-week low. Stock will often be up several hundred percent before forming this pattern. Next, you want to see a series of pullbacks - each with a shallower depth than the last. Mark Minervini refers to this as a volatility compression pattern or "VCP". This pattern is a visual representation of the supply/demand dynamic playing out. There is supply, i.e. sellers, near the $33 level. Each time the stock reaches that level, selling pressure sends the stock lower. However, as those sell orders are worked through, each pullback should be shallower than the last - a sign that there are now fewer sellers. The stock is being transferred from weak hands to strong handed buyers. Ideally, you want to see the final pullback in the single-digit range. Look for signs of institutional accumulation during this pattern. These are large green volume candles showing heavy buying by large funds. I also like to see volume dry up in the final days leading up to the breakout. This is further confirmation that sellers are gone and the stock is becoming harder to buy. With little supply, any increase in demand, i.e. buying, will easily propel the stock higher. Finally, you want to buy the moment the stock clears resistance. If there is not a clear resistance level like on this chart of CCB, use the high of the most recent pullback as your breakout point. This is where you want to buy. Place a stop beneath the last swing low (the low of the last pullback). If done properly, you should never need to risk more than 10%. Although not necessary for a successful trade, high volume on the day of the breakout and during additional up days soon after the breakout will greatly increase the odds of a profitable trade.
NASDAQ:CCBEducation
by rossgivens
4
OXY, A TRUE example of FALSE break out !Regardless of what legendary investors (Like Warren Buffett ) or famous traders do, we always should trade our own strategy. OXY was fighting with a strong static resistance and finally lost the battle. We have 9 hits to this static line which shows how powerful it is. False break outs are among the most common traps in trading . Although the concept is very simple , many traders fall simply into the trap just because of lack of patience or weak risk management strategy. Please keep this words in mind and I promise you will be the winner in long term : " Be sure about a break out before jumping into a trade " . True break outs have three conditions: 1. Break out should be done by a strong high volume bullish candle and at least 50 % of body of such candle should be placed above the valid resistance. 2. A pull back to broken resistance and rotation is necessary to be sure about true break out. Please note sometime we may not see a complete pull back ( if there is a support before broken resistance) but who can accept the risk of false break out? 3. Continuation of movement in direction of break out. Occidental Petroleum fulfilled first condition in it's last attempt ( if we close our eyes to volume) with a gap up bullish candle above the resistance. It made also a pull back but no rotation and continuation of the upside movement came after that. It means we had a false break out. I investigated false break outs of a dynamic resistance in my previous publication on BTC and here I showed an example of false break out of static resistance. Regardless of type of resistance (dynamic or static) , concept is the same. True break out setup has been shown on the chart. As you see the concept is very simple. Please keep this concept in mind and believe me you won't regret. Wish you huge profits and good luck.
NYSE:OXYEducation
by SaeedSajedi
5
What are True and False Break Outs ?False Break outs impose considerable loss to traders. How to recognize a false break out? To recognize a false break out we should first learn what is a true break out? In fact,simply, Every break out which is not a true one is a false break out. BTC in it's recent movements shows two beautiful example of false break outs. As shown on the chart, we have a dynamic resistance line with three clear rejections and two false break outs. It means before 1st break out which was 4th rejection BTC had a chance to break out the resistance but it never succeeded. Why? A true break out has three important conditions : 1. first of all, Break out should be done by a strong high volume bullish candle and at least 50 % of body of such candle should be placed above the valid resistance. 2. A pull back to broken resistance and rotation is necessary to be sure about true break out. Please note sometime we may not see a complete pull back ( if there is a support before broken resistance) but who can accept the risk of false break out? 3. Continuation of movement in direction of break out. As we can see, BTC in it's 4th and 5th attempts to break the line was unsuccessful even to fulfill the first condition. Also shown on the chart is what could have been a true break out. Although simple in concept, false break outs are headaches for some traders. What makes traders to fall in the trap of false break outs is not because of complexity of the concept ( As it is very simple ). It is about controlling emotions and psychology. Good luck everybody.
COINBASE:BTCUSDEducation
by SaeedSajedi
6
What is a breakout? #breakout #Candlestick #TA #Tocademy Hello. This is Tommy. The lecture material I prepared today is a concept that must be well informed by TA(Technical Analysis) traders, especially in recent market where untraditional patterns, price actions and trends, as we call ‘scam moves’ occur all the time. I bet you are familiar seeing retail traders or chart analysts shouting “breakout!”. In order to derive market trends and price action/momentum, we find millions of technical variables such as trendline, channel, Fibonacci retracements, pivot levels, and other indicators, etc. Then we seek for behavior of price action by observing whether these variables are kept valid (not broken) or become invalid as soon as they are broken. Understanding and utilizing this behavior, we make trading decisions by deducting optimal zones to enter position(support/resistance), set stoploss/target price(bottom/top), and statistically giving weights on particular scenarios. In TA world, breakout means that the price has pierced through certain variables. It is commonly known that when the technical factors are broken, additional price momentum is expected towards the direction of the breakout. As the example above, let’s say that we found a falling trendline that are being formed, meaning that at certain point or area, trendline keeps pushing the price down forming LH(Lower High)s. As soon as the price pierce through the trendline, meaning that the trendline failed rejection, we say “trendline is broken above” and can expect more bullish rally. The direction of the trend would be vice versa when trendline under the price is broken below. So, we buy when PA is broken above and sell when PA is broken below. That sounds so simple huh? If it was that easy, everyone would be rich right now. I'm sure most of you reading this post are already aware that it's never easy. Why? It’s simple. In this world, there is no such thing as 100% “breakout”. To put it simply, everything we do based on the technical chart is somewhat relative, abstract, and subjective concept. It’s not like breakout has 100% succeeded, or failed but rather is more like breakout has succeeded in 60~70% chance. In other words, there are more than two possible future cases when we search and utilize breakout behavior. So, we traders need a reliable standard to statistically quantify the ‘degree of breakout’. The most basic way according to the ‘textbook’ is to consider closing price of candlestick firstly crossing the variable. As the price of the candlestick closes above the trendline as case 3, we give a decent weight on breakout scenario. However, case 2 is the one that confuses us every time. This is when the price did pierce through the trendline but closes below, usually leaving a long tail as a trace which sometimes is interpreted as a whipsaw. As soon as this happens, we have to admit that the chances and reliability is definitely lower than the case 3. It might be regarded as a false breakout or a noise if the trend continues afterwards and it might not actually. It’s a 50:50 call I would say. When you encounter case 2, to give you a little tip, try waiting a little more to observe next following candles. If the next following candlesticks keep closing prices below, I would raise the probability that the breakout is a false one. In fact, it is best to just not give any meaning on breakout in case 2. It itself is a risk to confirm whether the breakout is successful, not successfully, or false and thus try not take aggressive trades in this very case. Thank you for reading my posts. Trade Well! Your likes, comments, and subscriptions are the greatest motivations for me to upload more posts.
BITMEX:BTCUSD.PEducation
by Tommy_Trader
192
BTCUSDT: Understanding a breakoutHello traders! This is great advice for you traders and it will make you a profitable trader so read and understand the truth. I am teaching you guys that breakout never works and to make money you should do the opposite of breakout. I already have posted an education post of the breakout but I am posting one more time. If there is a bullish breakout go for a sell, if there is a bearish breakout go for the buy. Trading is a game of probability. The winning probability of selling the bullish breakout is 5 out 6 times. So it's always good to try your luck on a better probability option. My recent wins on this method were 45 out of 50 trades and my account grew 10 times in a two week using 10x leverage. People may call it a fakeout but in reality, it's not a fakeout but it's the true nature of the graph. Ask the questions in the comment section, hit the like button for support and follow to stay connected.
Education
by Aadil1000x
2
How To: Find Stocks at the START of an UPWARD move.This video will show you a VERY simple way to find stocks that might be at the start of a new upward trend. Video covers: 1. Change your chart from a line chart to a candlestick chart 2. How to add a Simple Moving Average indicator and customise its settings 3. How to setup and add columns in the TradingView Screener 4. How to find stocks where the price has just crossed above the 20 Day Moving Average 5. How to create a TradingView Watchlist 6. How to add these stocks to the Watchlist and keep track of them over the next few days to see if they are trending up Tips: - Don't forget to save your columns (on the left drop down in the screener) and your filters (on the right drop down in the screener) - I tend to look for stocks where the Moving Average is starting to point up to show that the overall trend is up, and not simply a blip - I also like to add the RSI to look for stocks where the RSI is pointing up and between 45 and 65. This is just a very simple example, but the demonstration of how to use some of the tools above might give you some of your own ideas and help you apply them to your own trading style. Like and subscribe if you found the video or any of the described functionality within useful :)
EEducation
by zAngus
19
Father of all strategiesHello traders! This is a detailed and most importantly a correct analysis of the previous pump and dump. There is always a reason behind everything and there is also a reason behind this whole formation. There is a complete cycle that forms before this formation and this formation is a reaction of that cycle. Let's talk about this formation After a deep search, I have figured out that the market never leaves any Support/Resistance untested and if it happens then we will see this type of formation and when the formation is completed we will see the market will move back to that untested Support/Resistance. (Tip 1: You can trade every breakout but on the opposite side of breakout because the market always show retracement after the breakout) At the start of this Formation the time the first pattern we see is a 'J' pattern. Now, what is the J pattern? 'J' pattern is itself a reversal pattern only if it is formed above the support area but in this case, 'J' pattern is not connected with the support area so it kept pushing up. The Next pattern after J is a correction/consolidation pattern and in total, we will see 3 consolidation/correction patterns in this formation. (Tip 2: After every breakout there is a reaction pattern and 5 out of six times market moves back after a breakout so follow tip#1) After the 'J' pattern the second pattern is an Expanding triangle and if you are aware of this pattern then I must tell you that you were always taught wrong because you must be taught that trade towards the direction of the breakout and it's a wrong way. As I told you 5 out 6 times market moves back after breakout and you can see the charts yourself. So trying your luck on 5 out of 6 probability is better than trying your luck on 1 out of 6 probability. (Tip # 3 is don't be fooled and follow tip # 1 and always use stop-loss to save yourself from unwanted loss and save your account for new trades) The third and final pattern is a correction breakout without any reaction pattern and this is a pattern that pushed the Bitcoin back to the pavilion. Happy new year guys and I hope you will make millions in the year 2022. Don't forget to hit the like button and follow to stay connected.
Education
by Aadil1000x
9
supports and resistances and how they convert ✔First of all lets start with the brief technical explanation and after that go through the analyse DOGE ✔ 1 support( an imaginary line, level or area ) 👍one of the most simplest technical tool that use for indicating the proper point for buyers to enter or purchase one stock for using support line we need more than tow price points that an asset doesn't fall below more than those points and using line to connect them 2 resistance ( an imaginary line, level or area ) 👍unlike support line investors use it to figure out the place for exit or selling one stock and for using resistance exactly like support line we need more than tow price points and one line to connect them but we should pay attention to this point that asset doesn't ascend above those points ⏲how support and resistance line convert to each other ⏲ 👍support and resistance can easily change to each others in simple word when acceptable penetration of the price happen in one line for next price hit (be touched by the price ) this line act as an opposite function for example we have strong support area if the price stand below this line and stay away for awhile for next time when the price become close to this area it will works as a resistance for the price 3 breakout 👍usually indicates new trend when the acceptable penetration happens by the price to one support or resistance in indirect way for example we have strong support line and the price start to stands below the line and continue its movement here we have breakout you can use horizontal line at the left corner of your charts at trading view for indicating your supports and resistances. or using other tools like Rectangle or Ellipse and indicate support or resistance zone instead of simple line. 🚀🚀analyse of idea🚀🚀 here we have important daily trend line and strong support area 💣 so If the price breaks this trend line and price stay above this line we expect gain for the price and our noticeable resistance line and our next target are located on the chart. This is not financial advice, always do your own research. 🐳MAD WHALE🐋
Education
by MadWhale
23
Breakout Trading | 7 Steps to Follow 📝 Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably these levels should be spotted on weekly/daily time frames. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. 4️⃣Opening a trade on a retest one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for a quite long period of time before it starts acting. Breakout trader must be patient not allowing his emotions to intervene. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
19
Trading Breakouts using Pivot PointsThe pivot points, like conventional Support and Resistance levels, do not last forever. At some point, the price will break out of these ranges. We always purchase at support and sell at resistance in our range strategy. However, there are instances when the market breaks out from these levels. Trading the Breakout, you can have a starter position (small position) once the breakout occurs and then enter heavily once the price retests the new support. In trading terms, this is called the ‘role reversal’ concept. This concept simply means the turning of ‘resistance into support’ and ‘support into resistance’ For example, when the price breaks below the support level , it is not a ‘support’ anymore; but is now ‘resistance.’ Here for example we've entered LCID once it broke out of the resistance trend line . This means that LCID is starting a trend reversal and has a good chance of starting a strong momentum to the upside. LCID extremely Bullish I personally prefer trading breakouts instead of "guessing" when the trade will break out. This helps us in catching strong momentum plays at the right time.
BITSTAMP:BTCUSDEducation
by MoonBets
4
Morning Star Candlestick Pattern: Trading strategy!🌟🕯️ ✳️The Morning Star candlestick pattern is a candle formation that can often be seen on price action charts. It has a bullish character and can often determine the main minimum of market fluctuations. ✳️Three candles in a figure are one of the mandatory conditions of the pattern. Nevertheless, it is quite easy to find the morning star on the chart. It's easy to make sure of this – just look at the shape and location of the “Morning Star" figure. ⚠️ The shape of the Morning Star pattern So, the formation consists of three Japanese candlesticks. Each of them must meet certain requirements. 🔵 The first candle is a bearish one with a rather large body and the absence of wicks or their presence with a very small length (no more than 10% of the body); 🔵The second candle is with a small body or completely without it. The candle should be with small wicks. The color of the second candle does not matter; 🔵The third candle is bullish with a large body. The body of the third candle should cover most of the body of the first candle (or engulf the whole body). Also, the candle should be without shadows (ribose) or with very small shadows; 🔵There should be a gap between the central candle and the other two. But, as practice shows, it is not always a prerequisite. ❗ Location of the candle model "Morning Star" ❗ The morning star is a bullish formation. Therefore, it is located at the end of a downtrend. The central candle is the local minimum of the downtrend. After the formation of this Price Action pattern, you should buy an asset. ❗ Signal amplification of the Morning Star model ❗ 🔴If the central candle was formed without a body, then the pattern gives almost 100% about the change of the downtrend to an uptrend. This model is also called the "morning star Doji" or "abandoned baby"; 🔴The presence of a gap between the central candle and the other two candles strengthens the trading signal; 🔴The bullish central candle is stronger than the bearish one. But the strongest is bodiless; The third candle completely covers the first candle; 🔴The presence of a small trading volume at the first candle and a large volume at the third candle strengthens the model. ✅ When to enter into a transaction We enter into the transaction after the closing of the third candle. It is confirmatory in the "Morning Star" pattern. This is a kind of guarantor of the model. ✅ When not to enter into a transaction Everything is simple here. If the pattern does not satisfy the main conditions, then we do not enter into the transaction. It will no longer be a morning star model, but something else. ❤️Friends, If you want more of these articles, like comment and subscribe❤️
Education
by TopTradingSignals
22
Regressive VWAP Band Buffer Strategy on GC 10RRequired add-on (free): NEXT Regressive VWAP Target market: COMEX:GC1! 10R chart Strategy Overview: - Long when price crosses upper band (green) - Short when price crosses lower band (red) - Do not initiate trades in the buffer zone (between the bands) - that is our filter Setting Alerts: Here is how to set price (close) crossing band alerts: open a chart, attach NEXT Regressive VWAP, and right-click on chart -> Add Alert. Condition: Symbol, e.g. ES (representing the close) >> Crossing >> Regressive VWAP >> Upper ( or Lower) Band >> Once Per Bar Close.
COMEX:GC1!Education
by ChartVPS
Why breakout never worksHello traders! This is another educational post just to break your false perspective which will benefit you and it will also help you not to fall into the trap of uneducated traders. I have seen traders who just make a trendline line and put a bullish arrow and say that after the breakout price will go to heaven but in reality breakouts never works and they are very far from reality. If you buy a breakout blindly then there is only 1 out of 6 chance that you are correct. In other words, you will keep losing again and again with that strategy. So why breakout never works? The patterns that we see are illusions, they are not real but the market does react to the trendlines and patterns. What I mean by the reaction is that after a breakout market forms different kinds of reactive patterns. These patterns help the market to move further up or they push the market back in the trendline and most of the time these pattern pushes the market back in the trend. If you can figure out what pattern is formed after the breakout then you can predict easily that the breakout will work or it will fail. Do your research and ask the questions. Here is the tip: Selling on bullish breakouts is more effective than buying on bullish breakouts.
Education
by Aadil1000x
1
Volatility Breakout Trading ExplainedIn this post, I'll be taking you through a step by step guide on what the volatility breakout trading strategy is, and how you could incorporate it in your own trading style. Disclaimer: This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. The Volatility Breakout Strategy - This strategy was designed by Larry Williams, a legendary trader. - The premise of this strategy is based on trends; what goes up, continues to go up - Based on this idea, the calculation and strategy is actually quite simple: Strategy - The Range can be calculated by subtracting the values of the daily high from the daily low; Range = High - Low - Base Price, or Entry Price = Previous Day's Candle Close + (Range * K), with K being a constant of 0.6 to represent the noise ratio. - If today's price exceeds the base price, you enter a position. - The next day, you sell all your positions at the daily open price. Example - The diagram above demonstrates an example case - We have an asset that had a daily range of $100. - Calculating the base price, we get $1020. - This means that if the price exceeds $1020 on the second day, we buy the asset and ride the momentum. - On the third day, we sell all positions at the market open price. - If the price of the asset reaches $1100 on the third day, that gives us 7.84% returns. - If it retraces back to $1000 in its opening price, we have a 1.96% loss. - This demonstrates that not only is the risk/reward ratio optimal, we have a statistical edge in our position because we're following the trend Strengths of the Volatility Breakout Strategy - Because we're trading purely based on volatility, and trading short term by selling all positions the next day, it helps us not to be swayed by market psychology. - Trends are a reflection of market psychology, and as human traders, we can get swayed by our emotions of greed and fear - However, through a systematic approach based on precise entry and exit points and strategies, we can ignore the noise from the market. - Because the trend is our friend, unlike reversal trading strategies, we have a statistical edge in our position, and risk/reward ratio. Conclusion Implementing this strategy directly in today's market might not be as effective, but an understanding of how legendary traders approached the market back in the day can certainly help you understand what you need to do to methodically approach the market. Taking your emotions out of the game, and having strict rules and invalidation points are key to becoming a successful trader. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
NASDAQ:TSLAEducation
by Michael_Wang_Official
8
Learning Parallel Channel TrapsSometimes we can get so caught up in the fear of missing out on the breakout that we forget it could be a trap. It is always crucial to listen to your intuition when you see these easy setups because more often than not they are more complex than they seem. In this example, a breakout occurred and buyers put stops below the last structure, a few days later this structure got raided for liquidity. Once the liquidity was gathered we began to see the true move to the upside. Do you see this often in the markets?
Education
by AlkalineFX
2
The Breakthrough StrategyGreetings, traders! Welcome to this short, 7-step strategy lesson. Are you new to trading? Don't worry: we're dedicated toward providing the most high-quality, easy-to-understand, and straight-to-the-point investing education to the TradingView community. This strategy lesson is beginner-friendly (we have pictures!), as we've inserted helpful links into each and every term, just in case you don't know them yet. Anyways, let's get right into the steps of this effective trading method , which we've named " The Breakthrough Strategy ": • STEP 1, The Breakthrough: Identify a breakout (or "breakthrough") at the most recent Support/Resistance (S&R) zone. With the horizontal line tool, if you haven't already, mark the level at which price broke: this will be your potential Entry Point (EP). • STEP 2, The Turnaround: Immediately following the breakout, you'll wanna see two or more consecutive candlesticks, going in the same direction of the breakout. After the streak, when you spot the first completely-formed candle, going in the opposite direction, you've found your "turnaround" point! Mark it up with a S&R line: this will be your potential Take Profit (TP) level. • STEP 3, The Other Side: Now, identify the most recent S&R zone, on the opposite side of the breakout zone: this will be your potential Stop Loss (SL) level. • STEP 4, The Average: Make sure that you have your Exponential Moving Average (EMA, 50) installed on TradingView. Is the end of it between the EP and the SL? Perfect! You're ready for the next step. • STEP 5, The Order: Place a Limit Order (TP, SL, and EP levels are mentioned in the previous steps). If, before price hits the Entry Point, things start to get choppy, close the pending order: it is now invalid. • STEP 6, The Execution: Did price hit your Entry Point? The order has been triggered —we're in! Good job, good luck, and hope for some profits. • STEP 7, The Final Step: "Practice makes perfect," so make sure that you backtest this method, to test it out before using it on the live market. Be sure to follow us, for future lessons which will help you significantly increase the power of this strategy! We hoped that this helped you! We ask that you pay it forward, and share this lesson with a friend, a fellow trader, or... heck... share it with your grandmother. “My mission is to help you see forex for what it is: it’s not ‘rocket science,’ but a simple strategy game. Get on the ‘good side’ of probability, develop the proper mindset, and you will prosper.” — Nio Pomilia, Forex Free Press
Education
by ForexFP
1
Boxes trading strategy example. $ABNB stock.Continuing my tutorials on boxes trading strategy. This time let's analyze NASDAQ:ABNB stock price movement. Taking all appropriate steps as described in my first lesson: 1. Identifying long-term trend channel. 2. Finding supply and demand zones. 3. Drawing a box inside which price is moving sideways. 4. Buying demand zone bounces. 5. Watching for breakouts. There are some curious details in this stock's price movements. We can see there was an attempt for a breakout from the box on the session opening of July 1st. However, there was not enough volume for the move higher, so the breakout failed. As expected, the stock reversed to go lower in the followind days. Even though this stock is in a falling trend channel, it's very news sensitive stock. For instance, if there are positive news regarding COVID mitigation, we could see a major breakout from the falling trend. ----------------------------------------------------------------------------------------------------------------- Airbnb has been on my radar for a long time now. Personally, I think it's a great long-term investment and I've been buying the stock on it's way down. I believe it will be a great post-COVID play. ----------------------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise.
NASDAQ:ABNBEducation
by AyBe_Invest