ok I have received several PMs yesterday with questions about how do I draw my breakout patterns...after I posted the breakout patterns of the EURGBP and GBPJPY.
I thought maybe I'll just post here a few charts from my watch list.
Please take note that usually I play breakouts only with the direction of the trend. On messy and choppier markets with no clear trend, two directions are veiled for me...if at all (trending pairs work better).
The upper trend line needs to be pointing from horizontal and down with it's angel. The lower trend line just the opposite. For the line to be veiled for me, I need at least three kisses between the price ant the line.
Wait for a break, pullback and clear PA to confirm. If the PA bar lines up with a round number it just makes it better. Use it to protect you stop order.
I like when I have divergence supporting me. I usually trail my stops using the bars (PA), PPZs and round numbers. First priority is reducing risk, moving stop to BE. I don't get the greatest R:R every time, because I manage the trades very tightly - I do have a very high win rate of them though...so it pays of when you have a runner once in a while.
I rather an high win rate and a low R:R just because I feel good when I win or BE. I rather see a winner takes off without me instead of taking a full bar loss because I hoped to see a run. For example - the 4H EURGBP - completely fine with me that it took off without me.
I hate loosing after I know where are the trouble areas - exactly as buddy ghous said earlier.
After I have a free trade in space without traffic, I like trailing with Mike's two bar stop methods and the BAT - depending on how choppy is the pair.
I lock up profit as much as I can. I will give it space only if I believe it can have a long run.
Another thing I was asked is R:R - I never base my trades or even check what R:R I can get when I enter a trade. That is just not bothering me because I know that at the end it all just adds up together. I look at R:R only for fun after I exited. I just take what the market offers.
I know James told this many times - so I just follow the big man's lead!
Nothing here is right or wrong - just my style. So I hope it answers the questions I got.
IMO as long as we all use the knowledge of support and resistance plus PA as James teaches, nothing can be wrong or right - just check if it fits your personality.
Look at the EURUSD daily and GBPJPY - there are trend lines that are not yet established enough.
In the pic below, also two pairs that need to consolidate a bit more.
IMO, as more as the pair is choppy and consolidates tight in a certain area - more powerful will be the breakout. That is because the more times a certain area gets tested and rejected, it gains more interest of traders, and I bet you the order flow above it (if we go long) or below it (if we go short) is building itself massively along time. In addition, that will be more safer to play, because as James teaches PPZs - old resistance becomes new support, right? so if the resistance was very strong, I guess also the new support will be - that is how I apply knowledge of PPZs in this kind of trades...just in a different way.
If you have massive support and traffic underneath you - just use it in order to hide your stop.
Traffic is not a thing I worry to much in this pattern. I do not need my pin or other PA to stick above all the other bars and create space. But I do need it to be a pittbull bar, meaning I can read what the market is doing based on it. I need it to test the trend line on the pullback, reject it and close on the other side. That way I can be sure our PPZ is actually "working" and we didn't get a false breakout.
I think there are ton off different ways to apply this material, but only as long as you have a theory and a reason for it.
Any comment will be welcomed. I am still very new to forex, so I am always open to corrections that can make my trading better. I learn and improve everyday slowly.
Ohh and...THIS IS NOT MY OWN STYLE. IT BELONGS TO mbqb11. I JUST LIKE IT AND IT FITS MY PERSONALITY. Just do yourself a favor and read all of his posts!!
ok I really hope it helps anyone!!!
I thought maybe I'll just post here a few charts from my watch list.
Please take note that usually I play breakouts only with the direction of the trend. On messy and choppier markets with no clear trend, two directions are veiled for me...if at all (trending pairs work better).
The upper trend line needs to be pointing from horizontal and down with it's angel. The lower trend line just the opposite. For the line to be veiled for me, I need at least three kisses between the price ant the line.
Wait for a break, pullback and clear PA to confirm. If the PA bar lines up with a round number it just makes it better. Use it to protect you stop order.
I like when I have divergence supporting me. I usually trail my stops using the bars (PA), PPZs and round numbers. First priority is reducing risk, moving stop to BE. I don't get the greatest R:R every time, because I manage the trades very tightly - I do have a very high win rate of them though...so it pays of when you have a runner once in a while.
I rather an high win rate and a low R:R just because I feel good when I win or BE. I rather see a winner takes off without me instead of taking a full bar loss because I hoped to see a run. For example - the 4H EURGBP - completely fine with me that it took off without me.
I hate loosing after I know where are the trouble areas - exactly as buddy ghous said earlier.
After I have a free trade in space without traffic, I like trailing with Mike's two bar stop methods and the BAT - depending on how choppy is the pair.
I lock up profit as much as I can. I will give it space only if I believe it can have a long run.
Another thing I was asked is R:R - I never base my trades or even check what R:R I can get when I enter a trade. That is just not bothering me because I know that at the end it all just adds up together. I look at R:R only for fun after I exited. I just take what the market offers.
I know James told this many times - so I just follow the big man's lead!
Nothing here is right or wrong - just my style. So I hope it answers the questions I got.
IMO as long as we all use the knowledge of support and resistance plus PA as James teaches, nothing can be wrong or right - just check if it fits your personality.
Look at the EURUSD daily and GBPJPY - there are trend lines that are not yet established enough.
In the pic below, also two pairs that need to consolidate a bit more.
IMO, as more as the pair is choppy and consolidates tight in a certain area - more powerful will be the breakout. That is because the more times a certain area gets tested and rejected, it gains more interest of traders, and I bet you the order flow above it (if we go long) or below it (if we go short) is building itself massively along time. In addition, that will be more safer to play, because as James teaches PPZs - old resistance becomes new support, right? so if the resistance was very strong, I guess also the new support will be - that is how I apply knowledge of PPZs in this kind of trades...just in a different way.
If you have massive support and traffic underneath you - just use it in order to hide your stop.
Traffic is not a thing I worry to much in this pattern. I do not need my pin or other PA to stick above all the other bars and create space. But I do need it to be a pittbull bar, meaning I can read what the market is doing based on it. I need it to test the trend line on the pullback, reject it and close on the other side. That way I can be sure our PPZ is actually "working" and we didn't get a false breakout.
I think there are ton off different ways to apply this material, but only as long as you have a theory and a reason for it.
Any comment will be welcomed. I am still very new to forex, so I am always open to corrections that can make my trading better. I learn and improve everyday slowly.
Ohh and...THIS IS NOT MY OWN STYLE. IT BELONGS TO mbqb11. I JUST LIKE IT AND IT FITS MY PERSONALITY. Just do yourself a favor and read all of his posts!!
ok I really hope it helps anyone!!!
![](https://resources.faireconomy.media/images/emojis/64/1f60a.png?v=14.0)