Hi,
I am toying with incorporating a more traditional breakout system but there is one major problem i keep running into.
That is when a bar breaks and closes above a clear support/resistance level/channel(whatever you want to get the breakout on) to instantly go back into that channel taking out your stop.
I know there is the method of waiting for a break, then a retest of the level to see if it holds but ofcourse that also means you will miss out on those moves where a break does continue.
Is there anything that can be done to tell when a breakout bar should be traded and when it should be avoided?
Thanks.
I am toying with incorporating a more traditional breakout system but there is one major problem i keep running into.
That is when a bar breaks and closes above a clear support/resistance level/channel(whatever you want to get the breakout on) to instantly go back into that channel taking out your stop.
I know there is the method of waiting for a break, then a retest of the level to see if it holds but ofcourse that also means you will miss out on those moves where a break does continue.
Is there anything that can be done to tell when a breakout bar should be traded and when it should be avoided?
Thanks.