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BTCUSDT - bull trapYesterday there was a false breakout! super beautiful example! I will tell you below what a false breakout is! False Breakout Patterns False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. False breakout patterns are one of the most important price action trading patterns to learn, because a false-break is often a very strong clue that price might be changing direction or that a trend might be resuming soon. A false-break of a level can be thought of as a ‘deception’ by the market, because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professional’s will push the market back the other way As a price action trader, you want to learn how to use false breakouts to your advantage, rather than falling victim to them. Here are two clear examples of false breakouts above and below key levels. Note that false breakouts can take different forms. Sometimes a false break will occur with a pin bar pattern or a fakey pattern as the false break, and sometime not A false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking. Generally speaking, a false-break is happens because amateur traders or those with ‘weak hands’ in the market will tend to enter the market only when it ‘feels safe’ to do so. This means, they tend to enter when a market is already quite extended in one direction (and it’s about ready to retrace) or they try to ‘predict’ a breakout from a key support or resistance level too early. Professional traders watch for these missteps by the amateurs, and the end result is a very good entry for them with a tight stop loss and huge risk reward potential. It takes discipline and a bit of ‘gut feel’ to know when a false-break is likely to occur, and you can never really know ‘for sure’ until after one has formed. The important thing, is to know what they look like and how to trade them, which we will discuss next…
by Yuriy_Bishko
30
FCPO TRADING : 78) false breakout shows its ugly head again...!this is trade no 78, an added info to the same fcpo chart... introducing a breakout killer - "false breakout"...today false breakout has yet shown its ugly head again...if you trade a breakout strategy then you need to add extra filter to eliminate those bad trades...well, I have found one...hehehe...let's share yours if you got one...tell me in the comment section below... I was waiting for my entry signal today and at last...found none...saved by the bell... gud luck and gud trading **PS : as a token of encouragement to motivate me further, I am really in need of some "LIKE" and "FOLLOW" **
MYX:FCPO1!
by HAIDOJO_trading
NZDUSD Prepping for takoff?NZD/USD has recently moved higher in a strong uptrend and for the past few days/weeks has been consolidating in what could be the first pullback on the higher timeframe. Diagram shows the 4 hour time frame and shows price has bounced twice in the past off of a support zone (purple box). Current price action has just formed a Pinbar on the one hour (my entry time frame) but is beginning to form the same pattern on the 4 hour allowing for a perfectly valid entry to the long side. I ideally would have preferred the pinbar shadow to cross one, or both off the shadows formed at the pivot points of the candles that bounced off of the resistance zone in the past. This would have caused more short sellers to enter the trade and would have potentially squeezed the price up higher. To accommodate for the chance the price may try to retest the lows and I have set a stop loss (red line) below the support zone to accommodate the chance of this occurring. Though this entry may lead to an extended uptrend trend leg, I recommend taking most of your profits around the levels highlighted (green rays). as price has bounced twice in the past it is likely that current price action may reach these levels and return to test the support level again. Should the price action break through these pivot points whilst showing good momentum, it will be worth leaving some profits (I recommend around 25-33% of total position size) on the table for a shot at another trend leg.
Long
by jackomak
Don't Say I Didn't Warn You!! (SPY Long)Hi traders, As I told you in yesterday's video I need to see a Daily bar CLOSE below or above particular SR area for me to consider that area broken. Yesterday was a picture-perfect demonstration. SPY dropped as low as ~296, turned around, and finished the day in SOLID Green! And today it's gapping even higher with a high probability of filling the gap up to 318. Yes, you'll not be the first in big breakouts, but at times like these, you'll be damn glad you didn't jump in too early. Tom | FINEIGHT
AMEX:SPYLong
by Fineight
Me, Myself and BitcoinSeeing recent price action I couldn't help but begin to react to potentiually early signals of a short. Between the two pennants we can see where it moves 'sideeways', but is this consolidation or rather, capitulation. Now we saw the price drop, then stablise into what i SEE as a bearish pennant. I then overlaid another pennant, conforming to fib levels and trending. And it paints a picture that, if we break down that bear pennant, we will test the other pennant further down, getting very close to 12 month bearish trend line, where we have been ranging above. But this is such a high risk chop zone it will become volatile. S/L. Risk management implemented, decision made, I have shorted. Be careful!!
Short
by UnknownUnicorn6513259
False breakout on EUR/USD? Hi traders! I'm new here and learning about different strategies. Now applying a false breakout strategy. Spotted a swing low and the candle that broke that price was between 1 and 2 ATR. Placed entry with a stop loss at 1 ATR from the lowest price point and take profit at R:R ratio of 1:2. Do I need to take more into consideration when applying this strategy? Other good indicators to combine? Fundamental analysis? Larger timeframes? #lookingforfeedback.
Long
by DannyDutch
1