Hello traders! This is another educational post just to break your false perspective which will benefit you and it will also help you not to fall into the trap of uneducated traders. I have seen traders who just make a trendline line and put a bullish arrow and say that after the breakout price will go to heaven but in reality breakouts never works and they are...
Underlying logic: 1. The price gets rejected from a level repeatedly and forms a major resistance. 2. There is an initial test of supply which absorbs some pending orders 3. The price finds a bottom and some sort of accumulation happens. 4. After the accumulation, the price tries to move back up to retest the resistance level. 5. A bull trap is confirmed when...
A-pivots (called A-UP and A-DOWN) are calculated using the opening range (OR - that is where price "belongs") often referred as Initial Balance ( IB ), in our case - monthly opening range. You can find the formula in Fisher´s book. Red lines are opening range (the range of first 2 or 3 trading days in the beginning of month). Then one multiplies a specified...
Trading breakouts is not only fun and exiting(whether or not it goes your way) but its a great test to keep yourself engaged and focused on the market, as well as the task at hand which is seeking out retests and confirmations for your next breakout play. In this example we can see this pair with gained strength, since picking up momentum from its move up from the...
Quick video recap of mega long breakout trade on FOXA using our B.I.T.S Breakout Intelligent Breakout Signals Indicator for TradingView. Original trade idea here on Tradingview can be viewed >>HERE<< Our B.I.T.S indicator is perfect for instruments that have volume and price action, so Stocks, Futures, Commodities and cryptocurrency
As you can see on this chart there were a couple of great breakouts, that went straight in the right direction. We also know that trying to catch tops & bottoms is a noob trap, with all the really ungifted new traders that are 95% certain to fail & quit obssessed with catching bottoms (go check the Bitcoin bull community they have a new bottom every 3 months). So...
Supports and resistances are horizontal lines on the edges (borders) of congestion areas. The bottom line is the support: the level where buyers strength overcome sellers, and buys are strong enough to reverse the downtrend. The top line is called the resistance: level where sellers strengh overcome buyers, and sells are strong enough to reverse the uptrend....
Welcome back to Lesson 6 traders. I have something interesting for y'all in this lesson. This lesson is going to be a series on Breakout Patterns. I will be posting one breakout pattern at a time, so it is easy to understand, and clean enough to follow. The following lessons are going to be posted in lesser time. So in the Lesson 6 series, since there will be...