DislikedDear friends:
I wait many hours for the EUR/USD to break out the range. Now it break the high. but what is my entry point? Need i to wait for the retrace?
Could you please help me to point out the entry point in the consolidation period.
thank you very muchIgnored
There are dozens of ways you can trade breakouts. Some better methods than others but none of the are necessarily the right way. Here is the way I trade them and it's served me well:
Two charts for you. The first is a H1 chart from your setup. I take only retests of the high/low following breakout and only ever on H1 and H4 setups taken from the bodies of the the candles that we have left behind, never the wicks. I have drawn green lines to signal where I would have drawn the lines for short entries and orange lines for long entries. I am usually looking for price to retest within 7 or 8 candles maximum, if too much time has passed, a news release may entirely change market sentiment and drive price in a new direction, straight through our S and R. However, I will let price action around my line still let me take the entry if I like it (you can see an example on this chart), all normal entries are taken on the touch, usually a pip or three before the line as you'll miss too many entries if you wait for the precise touch.
This chart shows two missed entries 3 winners on touches, one possible winner on a price action setup and one loser.
Your setup is the green circle, see how it makes a perfect entry off those bodies on H1? Very small drawdown on that entry and possibly 115 pips profit.
However, the second chart shows you the M15 setup at the same line. Looks weird, doesn't it? What it shows is how taking the breakout retest on M15 can be a taxing and frought game, leading to a much higher % of failed trades in my opinion. However, as we are looking for longs at some point, i've circled a pretty decent looking candle cluster that might be used to get your entry, if you hadn't taken the H1 touch.
These are just my thoghts and ideas, they do work consistently well for me, i'm sure other traders have a different view. Hope it helps