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Breakoutzone

BREAKOUT VS FAKE-OUTWe all know that markets can be a pain to trade when they are in a period of consolidation and choppiness. One trade that often appears during such environments is the breakout trade - something I'm sure most of you have traded before. Breakouts often occur when choppy markets are transitioning to a trending market. If executed correctly, they can be great opportunities to catch the beginning of a new trend, or a continuation of an old one. But no good breakout trade comes without having sent traders on a wild goose chase. Sharp spikes above consolidation zones often come crashing back down, leaving some traders scratching their heads as their profits are eaten away and close, in many cases, for a small loss, only to miss the ACTUAL breakout and feel annoyed at having missed out on cold hard cash. So how to avoid fake-outs? Follow these points and you'll be in a good position to catch those pesky breakouts at the right time: - Wait for price to consolidate in a box between two zones - The box should have at least two touches on both zones - Wait for price to break beyond one of the zones - Once price returns back to the consolidation box, wait for the market to retest the edge of the box - For sell trades, place an entry at the low of the strong candlestick after the retouch, and for buy trades, place an entry above the high of the strong candlestick after retouch - Place stop loss in the midpoint of the consolidation box - The profit target is the nearest major support and resistance level You may find that the trade fails even after applying ALL of the points. Remember that no trade is guaranteed but as traders, we want to put ourselves into the best position possible to make a valid entry. I hope this helps and good look trading those sideways markets, AvidTrader
by avidtrader89
intraday setup banknifty channel modeI wander why people think nifty/banknifty in bearish mode.. today banknifty was in red but it doesn't mean its bearish. its moving in perfect channel mode and i depicted all posiblitiles. the trigger for short only when it break the trendline. level are different and the short setup will depend on how it open tomorrow. there is very simple setup for banknifty i.e. ORB which i play most of the time and its very good and profitable. ( just need patient)
NSE:BANKNIFTYShort
by AvinashGaikwad
1
Is this the moment we've been waiting for??It doesn't get much easier than this, USDCAD just broke and retested lower trend line & demand zone with tons of space to the downside. I'll be looking to enter once 1.31000 (psychological level) breaks again, with long term targets toward 1.25000 (approx 600 pips). However I'm being cautious with this though, because price could also just bounce off demand & retest the .50 prz to create a triple top or lower highs. With a swing trade like this you don't want to jump in too early, because stop loss placement could easily be around 200 pips, and that's a tough loss to take, no matter what your position size is. Hindsight is 20/20 #GoodLuck
Short
by jonathanwright
2
CADCHF, Sell setup developing?Today we have CAD Interest Rate Decision, We might put in an EO for a sell if it fits our rules. “The policy statement should read similar to October as the outlook for growth and inflation remains consistent to that outlined in the October MPR while uncertainty remains unresolved. We look for an overall tone of cautious optimism.” “The Bank may make dovish reference to the move higher in long-term interest rates, though the tone should be more of an observation than a concern. There is risk for a more downbeat assessment of labour market conditions, given the weak composition of gains skewed toward part time, which has likely contributed to slower wage growth.” “Given the prevailing level of uncertainty, odds of policy easing at future meetings remain elevated, and we continue to price up to a 40% chance through mid-2017.”
Short
by lindafx
Potential Upside in Brent Crude Oil (Cont'd)Continuation from previous post, and adopting @pipizer feedback in the comments: 1. The past few days has saw a drop in the price mainly due to reports on OPEC output in October reached an all-time high. This lead to a further decrease which finally complete the Cypher Pattern. 2. A reversal candle (hammer) was formed the following day (14 Nov) with a long tail signalling bulls overcoming the bears at EOD. Mainly driven by renewed hopes of OPEC output deal. 3. Breakout of previous day hammer lead an opportunity to long and my entry was around the area stated, with a Stop Loss placed around the support region indicated. 4. I have identified 3 potential resistance zone and they fall nicely into the fib retracement 0.236, 0.382 and 0.618 area. 5. The first resistance zone break will cause more conservative traders to go on a long due to a 2nd breakout and short position traders will start covering their shorts which becomes the driving force to push further up. 6. Still, upcoming OPEC deal will be the crucial driving force for it to either trumps or fall. It will still be volatile during this period. 7. My exit strategy will be on a trailing stop in this case.
TVC:UKOILLong
by akenii
Potential Upside in Brent Crude OilMy first trading idea, here to learn from the experts, please give feedback on this idea. Several Signals I have identified: 1. Cypher Pattern has confirmed potential reversal zone 2. A support level at 45.48 area is forming 3. Still in an long term upward trend 4. Catalyst moving it up would rely on upcoming OPEC deal on production cut What to do now? Wait for a reversal candle to affirm confirmation of entry. Trade on breakout of resistance 47 area.
TVC:UKOILLong
by akenii
2