Trendline breakouts

Last Post
First Unread
1 4 5 Page 6 7 8 21

Post# 101
Quote
Mar 18, 2010 6:28am

Far East Man
Joined Apr 2009 | 50 Posts | Status: Member

Quoting MarketPips

After how many pips of break do you count it as a breakout?

He hasn't clearly mentioned about how many pips the price actually has to pass over the line. He waits for the price to retrace back to the breakout point to place an entry, so the amount of price buffer may not be a big issue for him.

Although I personally tend to enter on an initial breakout, the advantage of emacro's strategy is that he doesn't pick the initial breakout, and just let the market breath and wait for a pull back so that you can safely enter into a trade after identifying a real breakout has occurred or not.

Hope it helps.

Post# 102
Quote
Mar 18, 2010 7:33am

avidstudent
Joined Mar 2008 | 13 Posts | Status: Member

Have been thoroughly enjoying this site. Was wondering why MACD histogram only is used instead of the complementary slow and fast moving average lines also? As oftentimes, divergence may appear on one and not the other?
Good investing!

Post# 103
Quote
Mar 18, 2010 8:19am

emacro
Joined May 2007 | 631 Posts | Status: Member

Quoting avidstudent

Have been thoroughly enjoying this site. Was wondering why MACD histogram only is used instead of the complementary slow and fast moving average lines also? As oftentimes, divergence may appear on one and not the other?
Good investing!

Glad you are enjoying the read...

Macd histogram helps give an indication of the momentum. If present then it helps if not, then the momentum is not behind the trade. That still doesn't mean things won't work out.

Feel free to contribute to the discussion.

Post# 104
Quote
Mar 18, 2010 8:22am

emacro
Joined May 2007 | 631 Posts | Status: Member

Quoting Far East Man

He hasn't clearly mentioned about how many pips the price actually has to pass over the line. He waits for the price to retrace back to the breakout point to place an entry, so the amount of price buffer may not be a big issue for him.

Although I personally tend to enter on an initial breakout, the advantage of emacro's strategy is that he doesn't pick the initial breakout, and just let the market breath and wait for a pull back so that you can safely enter into a trade after identifying a real breakout has occurred or not.

Hope it helps.

Basically this is a discretionary method, no hard and fast rule. If you notice in the last m5 cable example, the candle that pierced the trendline was a big one. That is also a contributing factor.

The main point is to have your trade strategy and plan set out. Whether to do like Far East Man, jump in on penetration or to enter on retrace, that depends on your trade plan, which will reflect your personality.(hopefully)

Cheers

Post# 105
Quote
Mar 18, 2010 9:14am

emacro
Joined May 2007 | 631 Posts | Status: Member

M5 Euro futures, will this one work? One must always have risk parameters in place to stop loss.