IS IT A FAKE BREAK OUT? OR NOT? see post here
allow me to give you the analysis, before hand of the breakout, there's a down thrust sign of strength with low spread (a pin bar) and high volume, but not a valid breakout for the down side or short. instead the sign if for the bull for long before the TDI price line crossed above trade line. that is the signal to buy. and at the break above, is still a valid break out, BUT ??? is it a continuation? or not? thats the question. it is not a continuation. its a sign to reverse anytime from that moment of the candle. and with ATR gives us also a arrow signal to take short/sell. as you can see in the image below. a few pips with actual lotsize as calculated from your balance equity in order to make you more profitable with this strategy.
allow me to give you the analysis, before hand of the breakout, there's a down thrust sign of strength with low spread (a pin bar) and high volume, but not a valid breakout for the down side or short. instead the sign if for the bull for long before the TDI price line crossed above trade line. that is the signal to buy. and at the break above, is still a valid break out, BUT ??? is it a continuation? or not? thats the question. it is not a continuation. its a sign to reverse anytime from that moment of the candle. and with ATR gives us also a arrow signal to take short/sell. as you can see in the image below. a few pips with actual lotsize as calculated from your balance equity in order to make you more profitable with this strategy.