Guys, i had read many strategies on this thread about the different methods of entering and exiting a position. Personally, me myself had used many strategies before and the one i found the most accurate where the risk is low and the reward is high is the trendline breakout/breakdown strategy. Look at the attached chart, my entry is on the circled blue oval.
The breakout is where i will long and the breakdown is where i will sell short. The cut loss depends. It can be the low/high of the breakout/breakdown OR it can be 1 bar below/above the first breakout/breakdown of the trendline. Of course, there will be times of false breakout/breakdown as shown on attached, therefore you can always apply the same cut loss strategy. As for where to take profits? This will be the first breakout/breakdown when it breaks the down/up trendline.
Personally, for my own trading style, i use the breakout/breakdown strategy together with market psychology to put the winning % on my side. What do you guys think? Also you guys can check out my blog at http://stockmarketmindgames.blogspot.com
The breakout is where i will long and the breakdown is where i will sell short. The cut loss depends. It can be the low/high of the breakout/breakdown OR it can be 1 bar below/above the first breakout/breakdown of the trendline. Of course, there will be times of false breakout/breakdown as shown on attached, therefore you can always apply the same cut loss strategy. As for where to take profits? This will be the first breakout/breakdown when it breaks the down/up trendline.
Personally, for my own trading style, i use the breakout/breakdown strategy together with market psychology to put the winning % on my side. What do you guys think? Also you guys can check out my blog at http://stockmarketmindgames.blogspot.com