Get started

Breakoutfailure

NQ Power Range Report with FIB Ext - 9/25/2024 SessionCME_MINI:NQZ2024 - PR High: 20189.00 - PR Low: 20173.75 - NZ Spread: 34.25 Key scheduled economic events 10:00 | New Home Sales 10:30 | Crude Oil Inventories Teasing weekly range breakout, high and low Session Open Stats (As of 12:35 AM 9/25) - Weekend Gap: N/A - Session Gap 7/24: -0.32% (open > 19946) - Gap 10/30/23 +0.47% (open < 14272) - Session Open ATR: 347.78 - Volume: 19K - Open Int: 228K - Trend Grade: Bull - From BA ATH: -4.0% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 20954 - Mid: 19814 - Short: 17533 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions. BA: Back Adjusted BuZ/BeZ: Bull Zone / Bear Zone NZ: Neutral Zone
CME_MINI:NQZ2024Short
by mv3trader5
NQ Power Range Report with FIB Ext - 11/30/2023 SessionCME_MINI:NQZ2023 - PR High: 16050.25 - PR Low: 16037.00 - NZ Spread: 29.75 Key economic events 08:30 | Core PCE Price Index (x2) - Initial Jobless Claims 10:00 | Pending Home Sales Another day of virtually no change - Maintaining weekly range - Failed breakout attempt above 16180 supply zone Evening Stats (As of 1:55 AM) - Weekend Gap: N/A - Gap 10/30 +0.47% (open < 14272) - Session Open ATR: 200.87 - Volume: 28K - Open Int: 280K - Trend Grade: Neutral - From ATH: -4.2% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 15247 - Mid: 14675 - Short: 13531 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQZ2023Long
by mv3trader5
💥 3 Types of BreakoutIn trading, the term "breakout" refers to a price movement that "breaks" past a certain level or range. It's important to note that breakouts can be false, meaning the price could reverse its movement after the breakout. Hence, traders often use confirmation techniques to confirm the validity of a breakout. A breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout strategy, know when to cut your losses and re-assess the situation if the breakout sputters. As with any technical trading strategy, don't let emotions get the better of you. Stick with your plan and know when to get in and get out. 📈3 Key things to know about Breakouts📉 📍A breakout in the stock market refers to a situation where the price of a security moves beyond a pre-defined support or resistance level, accompanied by an increase in trading volume. Traders often take advantage of breakouts by entering a long position when the price surpasses resistance or a short position when it falls below support. This movement beyond a price barrier often leads to increased volatility and a trend in the direction of the breakout. 📍Breakouts are highly valued as a trading strategy because they can signal the beginning of heightened volatility, substantial price movements, and major trends. This phenomenon can occur in various market conditions and is particularly noticeable in the case of channel breakouts and price pattern breakouts, such as triangles, flags, or head and shoulders patterns. As volatility contracts during these periods, it typically expands once the prices move beyond the established range. 📍Breakout trading can be applied to various trading styles and timeframes, including intraday, daily, or weekly charts, making it a versatile strategy for day trading, swing trading, or any other approach. 🔹 Trend Line Breakout: This occurs when the price breaks past a trend line that has been connecting a series of lows or highs. 🔹 Support and Resistance Breakout: This occurs when the price breaks past a significant level of support or resistance. 🔹 Flag and Pennant Breakout: This occurs when the price breaks past a flag or pennant pattern, which is a short-term consolidation pattern. 🔹 Rectangle Breakout: This occurs when the price breaks past a rectangular price pattern, which is a pattern of price congestion. 🔹 Volume Breakout: This occurs when the volume of trades surpasses a significant level, indicating a potential change in trend. It's important to note that breakouts can be false, meaning the price could reverse its movement after the breakout. Hence, traders often use confirmation techniques to confirm the validity of a breakout. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
20
2nd chance entries (CL)Deeper look @ breakout setups. Blindly selling Lows or buying Highs is a recipe for disaster in the long run. But the right kind of buildup can legitimize a breakout (BO) entry. When a breakout failure (BOF) does NOT immediately make a strong move in the other direction, you've got to ask yourself -- has the power balance really shifted? If not, it could just be another example of pressure building in the original BO direction. ** Also, take a look at the breakout entry at B (no buildup) vs D (buildup). Especially relevant for a coiling market like crude oil.
NYMEX:CL1!Short
by structuredtrader
NQ major test coming up (NQ1!)The NQ is one of the trappiest contracts out there, so watch what happens at this level. It's worth zooming in to the 15m just to study the aftereffects in a few days. The longer it builds up near the High WITHOUT breaking it, the more I'll be biased long. If we probe it overnight, I'll be back to cautiously looking. Ideally I either want a naked attack in the morning WITHOUT a preceding spring --> that's mean a short, expecting a trap and a major drop in the market. OR I'd like to see price come down a bit at the open, scoop, and re-attack the High --> that's grounds for a breakout trade. Remember, D1 analysis and shorter time frame execution means different things for different people. Do NOT trade the NQ unless you are experienced...
CME_MINI:NQ1!
by structuredtrader
1
Why an early fail can actually HELP a breakoutThis is a great example for traders of all timeframes to study. I don't really have time for people basing trades on wide zones - that's fine for analysis, but for a TRADE, you've got to see the fight at a specific level. When you draw these correctly, you can get a really great picture of evolving sentiment and balance of power shifts. Most traders treat breakouts way too lazily. You don't just enter at a new High/Low. You NEED buildup. Any naked attack from distance is likely to fail. But what if it only pauses, instead of crashing? Do you redraw the level? Do you avoid the trade completely? What works for me: Talk out the developing scenario. A fail failed? Ooh, interesting. Maybe there's more power on the original side than expected. Once the breakout's happened, how is the other side thinking? I was biased long, getting everything I wanted to see....but what would the Bears want to see? Probably a close back under the grey/yellow boxes, right? But wait, now that we created another temporary level during the failed probe, there's another level price needs to break through before even attempting the yellow level and then grey boxes! --> this makes for a likely bounce point, and creates several chances for late entries. Best of all, it means a breakout entry at the original level will be protected by that bounce and your trade stays green.
CBOT_MINI:YM1!Education
by structuredtrader
CL breakdown continues powerfully, big Daily levels in sight nowUpdate to a previous post I made about the CL level breakdown. Bias remains short until proven otherwise. Flat, no clear entries for me until tomorrow morning when we look at premarket price action and range. Yesterday's trade posted to twitter. 11.25R despite mismanaging the hell out of it. It's imperative you learn to take wholesale entries, understand context, and know when to pull the trigger and when to HAPPILY stand aside.
NYMEX:CL1!Short
by structuredtrader
level attack without buildup, the recipe for a trapWhen you have your eyes consistently at the same important levels (preferably horizontal ones), you'll quickly see the difference between a buildup that creates a powerful breakout vs a breakout fail / trap. Naked run ups like this can be scary to get in front of, and it's not a straightforward entry, especially if you're executing on the H1. But this is why you should be building libraries of similar setups. If price knifes through that level and shoots straight up, its likely because of some really spectacular news catalyst. But in NORMAL market conditions, this is a great trap patter to study. I think I recently shared a chart showing consistent buildup ahead of a level on the NQ. Several turns, wedging, etc BEFORE the level's probed. That's power, like a coiling snake. But no coiling here. Think about the psych of the traders involved here. The Bulls who bought down low are happy and probably looking for an excuse to cover. Smart longs are covering at least part of their position here (sell orders). Some late FOMO Bulls are looking to get in and will try and buy on a probe past highs. Big money isn't doing this. Bears are entering and keep pushing price back under the level (check out the 15m). With each bar, more Bears are selling. IF price pokes back up above highs, that's usually where Bears will tap out and the BO will be safe. This actually momentarily happens on the 15m, but it ends up turning into a second Bull trap. From the same perspective, once we've got that wedge, a push below the wedge spells the end of the Bulls. When it happens, there's no fail of a fail....Bulls pull out, and price crushes back into the big range.
Education
by structuredtrader
EURAUD 4H Triple Top PatternPrice tried to breakout of double top resistance and make higher highs. Breakout failed and is creating a bearish candle pattern. Sell Stops are listed Take Profit is listed Macd is currently in a buy position being above the 0 level line. Bullish Continuation Trend failed Possibly will make Macd fall below 0 level line Macd will be my stop loss if below 0 level line If Macd goes above 0 level close out sell trades If Macd is below 0 level confirmation of sell trades.
Short
by Tradingstrategyguides
SDRL # Price marked up from previous low breakdown failure(less volume are interested to the breakdown). # Mark up is supported by volume spike showing interest. # RSI higher high. MACD lines up below 0, histogram converge. # News: Restructuring plan. Condition: 1. If price gaps up high at pre-market or market open, I will cancel the orders and wait for a gap up pullback on 1min/5min timeframe with good R:R ratio to get in again. 2. If my entry is triggered with weakness or potential trapped, I will watch the move for the next 30min and get out of the trade if strong selling occurs. Hold the S1 position if weak selling follows through. 3. If no sign of strength and weakness on both sides, my order will remain. 4. If further weak selling is coming, I will find a better LWP for entry. 5. If strong selling follows, orders will be cancelled and reassessment is needed.
NYSE:SDRLLong
by happy04t
How to Trade a Range and Potential BreakoutHello Traders, All of us want the price action to follow the direction of our trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a price action is patience and a better strategy. When I say better strategy that means the one which keeps you ahead of the others. In this backdrop, I have tried to spot better entry points in case the price action builds a range after a nice up move and we are visualizing a potential breakout on upside. The basic principle behind the strategy is to "Buy at the low and Sell at the high". It should be noted that the entry spots can not guarantee sure win but surely minimize our risk and increase the chances of reward. After an entry, stops can be placed either below the range or below the prior swing low -- whichever suits the situation. Same strategy can be applied, in opposite direction, in case the overall trend is down and we visualize a potential breakdown after a range. Notes on the chart. Hit like for better educational publications in future. Comments are welcomed. Trade safe. Best Regards Bravetotrade
Education
by Bravetotrade
3
EURAUD: Reviewing The Tape (Education not a trade idea)I've already written my "Trading Recap" blog post for today but I wanted to share something with you guys. For you guys that have been following along with my blog you know that I've been working on an article looking at professional athletes and professional traders. One of my main comparisons is the amount of preparation and review that both do. Just like Peyton Manning or Tom Brady do after every game, after each trading day I review the tape, meaning that I go back through my trading day and critique myself. After all, in this industry we are our own bosses so if we don't do it who will? Last night I posted a trade looking for a potential breakout to the upside on EURAUD, although we did test the highs of our previous structure level we never got the break that I was looking for and it ended up being a scratch trade (breakeven). This morning in our Warroom meeting Jason Stapleton fired off 2618 idea for this same pair. (I'll attach a link to the FREE 2618 training at the bottom of this post). In the live room we ended up finding a bearish Cypher at the same level and ended up getting short as well. After banking some good pips, I spend the rest of our session going through the rest of my portfolio and basically but this pair on the back burner. BIG MISTAKE, if only i would have paid more attention to it, i would have seen that IF our 2618 setup were to rally to 2nd targets THEN we'd also have a Bat pattern completion which we plant a stop & reverse at. So yeah I left a few pips on the board today but the important part is that I was able to identify my mistake and turn it into a learning experience. For those who don't take the time to review their day, well that mistake may continue to be a future mistake. Thanks for taking the time to read this and I'll see you next week at the Technical Trader Workshop!!! FREE 2618 Training Lesson: www.youtube.com 2015 FREE Technical Trader Workshop: promos.tradeempowered.com
Education
by Akil_Stokes
10
VZ looks ready for another down leg Telecoms caught some weakness after earnings release. $51.50 was important resistance above which buyers failed to hold eventhough company released numbers higher than expectations. Now, we have tight consolidation near lows with resistance at $49.15. Break below consolidation support $48.50 will trigger Short entry and will open doors to $46 major support. If market will enter into correction mode (complicated geopolitical situation combined with potential rate hike) that will add arguments to this idea. Risk/Reward 1:4 make this idea attractive with high-winning rate.
NYSE:VZShort
by andrew.berg