Hello all. Haven’t been on here in years. Anyways I’ve always been a fan of breakout trading so I wanted to get your input on breakouts. Obviously the best thing to do is to backtest it against historical data(which I will) but, was just wondering what the general consensus is on breakouts in regards to RETESTING the S/R level. Do most real breakouts come back to retest the resistance now turned to support before going higher? Do the strongest breakouts break support or resistance and don’t bother retesting the S/R level? I would think it’s the latter but again that’s just my hypothesis. We can’t predict the future but if we can find patterns or edges in the market ie. differences between real breakouts vs fakeouts, we can potentially minimize the size of our losses by observing price action around the S/R zone and bailing early if the S/R zone is indicating that it is holding(at least for now). So in a way the question is are we able to look at trading as if we were playing poker. Looking at price action before we enter = looking for good cards. Looking at price action after we enter = looking which community cards are coming up on the board. Food for thought. Cheers.
THESE PEOPLE WITH COLORED BADGES ARE NOT PROFESSIONAL TRADERS
Pizza_Money _&example4Forexfactory All Time Return:
48.7%