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What are you looking for to confirm the breakout?Cobra wrote:indeed the 3rd touch means breakout. let's see how far can this breakout go. if simply every breakout is real, then trading is so easy, unfortunate it's not the case.
Breakout then consolidation above the breakout point.L_T wrote:What are you looking for to confirm the breakout?Cobra wrote:indeed the 3rd touch means breakout. let's see how far can this breakout go. if simply every breakout is real, then trading is so easy, unfortunate it's not the case.
minor note--cobra's points are certainly true but three other factors may apply. (1) the character of the market--so underling strength and momentum or the emotional feel. so if things are very strong in the direction of the breakout (re jan) it makes more sense to take the breakout 'blindly". (2) or watching put call as a sign of how people are positioned near breakouts--there is nothing more amusing than a huge put call in a low volume market--it feels like levitation. and it seems to break all the rules to really by the book ta guys--the trick is the low volume of trading which allows the puts to hold things up (3) the prior support or resistance near the breakout point--can be a clue in this current case we have 3 days and the daily 20 ema on the daily. using the rule of thumb of 1/2 the time to break overhead that it takes to create it gives no edge. it's certainly possible--but in the qqq we just lost a 3 month trend line and this is only the second try higher.Cobra wrote:Breakout then consolidation above the breakout point.L_T wrote:What are you looking for to confirm the breakout?Cobra wrote:indeed the 3rd touch means breakout. let's see how far can this breakout go. if simply every breakout is real, then trading is so easy, unfortunate it's not the case.
Breakout and never stop.
So essentially there's no better way to trade breakout. Either you blindly buy all breakout, relying on the long run to win. Or you wait for breakout and consolidation above the breakout point. Or you wait for breakout and pullback to test the breakout point. Either way, you might miss a very important breakout which simply break and run away. It's safer to wait for pullback or consolidation, true, though.