Quantifying Breakouts Point

It’s weekend here and I want to share this little bit tutorial on How  you trade your breakouts. You need to practice and try to see it what fits your entry. If you are looking at a breakout on the Weekly, look on the daily or 4 H until  you see a basing of Demand or supply level.

The same goes for day trading, from a 4h or 1H and goes to the next smaller time frame. Below is an example chart for day trading.

Notice on the 30 minute chart a breakout of support.

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If  you put a horizontal line from the support cutting the candle that has now become a new resistance.

After that you zoom in to the next smaller time frame until you see a basing of demand and supply.

In this case we are lucky to find one on the next smaller time frame. SOme times you have to go lower even towards 1 minute chart.

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Notice that there is a supply level on the 15 minute chart. Notice also it made a fake break through on the resistance! And turn from the supply. Im sure if a novice trader had sell at those resistance and stopped out and feel frustrated to even enter the market again when the price made as he/she planned!

Here is another example from a real chart taken of my IC market chart platform. The gbpusd that broken out the support level. Start looking at the lower time frame and put a horizontal line.

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Now I am finding any supply level near to those horizontal line new resistance area.

Didnt find anything lower until I found it on the 1 minute chart. 1 minute chart, tells me a low risk with a good high reward. Meaning using a 1 minute Stoploss will make any trade a very low risk.

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Let see now if price had visited and turn from that point of Supply( above the resistance line ).

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See how that trade made a powerful decision. SO if you ever want to trade breakouts ( proper demand supply breakout ) has a very high probability way. Don’t just trade and enter your trade after the breakout. Wait patiently for a pull back to join the crowd.

Breakouts are also a point of imbalance within the order flow. Either you want to trade breakouts on the smaller time frame or larger time frame, this is One of the way of finding where your quality demand and supply is. There are more other ways but most of them are archives in my FXgroupee membership. If you haven’t Join, get the opportunity now so you can trade well and consistently winning against the odds !!

Also as a reminder, to trade a breakout, you need to know if you have Profit zones ( room for price to go ) with the least path resistance. This is only when you must look to the left of the chart for any nearby opposing level .

Ensure you test this before even using it live. Build your trading model. Don’t just trade out of feeling the moment. Be mindful of your present, especially the present price action.

Most people are caught with too much emphasis on past where their main focus is the presence.

Just like When I play my pc games, I am more focus on to achieving my goal on the games nothing more. Completely ignoring my surrounding but focus on the games environment surrounding for enemies or obstacle.

It also goes the same way as you drive your car. You focus on the presence of driving safely, the surrounding ahead of you, behind you left to right. You cannot drive while thinking of something else taking of your direction and hence making a mistake, which end up crashing another vehicle.

The presence of moments are important. so As the breakout, look for the recent fresh orderflow supply and demand , that is where orders are unfilled and needs to be filled by YOU !

 

Happy hunting everyone!!

 

 

 

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