Forex candlestick 30 minute strategy video caption
hello Mr. Long Hang Seng
Thank you very much for your 30 minute strategy video. Can you please record the video without the background music.
I’m not able to understand what you are saying in the video. It makes it very difficult to understand your strategy, sorry.
please caption on
under youtube video.
Breakouts and Fakeouts
There are only two ways of trading price action – on the pullback or on the breakout.
Breakouts are easier to identify – the bar is higher (or lower) than the previous bar.
The breakout signifies that the momentum is with the overall trend.
Provided we have a system in place to avoid fakeouts, this offers a good-to-excellent chance of success.
Breakouts should only be traded in an established trend and one way to do this is to look at a higher timeframe.
If this is heading in the same direction as the timeframe you are trading then you have a better chance of success
than if it is trending in the opposite direction.
Sometimes after a breakout price can retrace a little – you should be able to establish how much it is likely to do so by looking at past price action.
For this reason you need a larger stop loss to accommodate the possible movement.
To some the larger stop loss can be seen as daunting and a disadvantage.
However, this needs to be weighed up against the advantage of trading with overall price momentum.
Almost all of the Dynamic Traders originally started with small stops (or no stops) and now all comfortably use larger stops to
enable trading with the trend.
Fake breakouts are very common – they can (and most probably will) occur on any form of support or resistance line.
Fakeouts can trigger you into an unwanted trade – at a huge loss to your bottom line if this event occurs on a frequent basis.
There are numerous techniques for this but a fairly straightforward one is to wait until the bar closes beyond the resistance (or support) level.
Fakeouts can affect your stops, too, depending on how you calculate them.
A fake breakout can last longer than one or two bars (or the wicks of a candlestick).
For this reason, some experienced trend traders tend are happier to wait longer to get into trades.