stephenleachman
教育

BREAKOUT VS PULLBACK (AGGRESSIVE VS CONSERVATIVE)

FX_IDC:ZMWCHF   ZAMBIAN KWACHA / SWISS FRANC
879 0 19
Breakouts and pullbacks are both points of entry. A breakout is when price sets a high and or low and later pushes through (breaking out) setting a new high or low. According to my personal trading plan, trading breakouts are more of an aggressive entry point due to the potential for false breakouts and possibly poor risk - reward. It is vital to wait for the breakout candle close before entering, (It is not considered a true breakout until the breakout candle closes) and a lot of times this could lead to a not so attractive risk - reward. On the other hand trading a breakout could give an entry that price might not pullback to thus providing a good entry point. The most important factor of a breakout is momentum some would say volatility but as I mentioned previously I consider volatility the rapid change in price whereas momentum is the direction in which that volatility is moving. There must be signs of strong momentum in the direction of the breakout If not then what looks like a breakout could just be volatility and high volatility with little momentum leads to false breakouts. (I use RSI but You could use any momentum based indicator to gage market momentum and just by waiting to for the breakout candle to close is a sign of momentum the higher or lower the close from the breakout point the stronger the momentum.
VS.
Pullbacks: After price makes a clean breakout, Its a very high probability that price will return to (Or Around) the breakout point. In my personal trading plan trading a pullback is considered a conservative point of entry. This is due to the fact that given price made the breakout providing a directional bias, entering in on a pullback could provide better risk - reward. Pullbacks can appen very quickly or they could take awhile and possibly could never occur at all. on pullbacks I like to see momentum winding down kind of gearing up for the next push.
Know the market condition and implement the appropriate entry point into the strategy that best fits.
ZH 繁體中文
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
AR العربية
首頁 股票篩選器 外匯信號搜索器 加密貨幣信號搜索器 全球財經日曆 如何運作 圖表功能 網站規則 版主 網站 & 經紀商解決方案 小工具 圖表庫 功能請求 部落格 & 新聞 常見問題 幫助 & 維基 推特
個人檔案 個人檔案設定 帳戶和帳單 我的事件處理號碼 聯絡客服 發表的想法 粉絲 正在關注 私人訊息 在線聊天 登出