Breakout Video - Feedback & Questions | Articles-Technical-Analysis

How do you avoid fake pullbacks, the fakeouts? Especially this month, this market had a lot of volatility around levels, and wasn't quite orderly. I was wondering, what do you do to avoid being stopped out?

Answer:

Hi M,

First, a trader must accept that being stopped out is always a possibility. Therefore, minimizing & managing risk must be a priority. Being stopped out does happen, and in fact the volatility of last week was especially difficult to trade at times.

Second, the video only discusses the setup areas. The entry trigger is based on lower timeframe price action analysis, and this aims to avoid many of the failures. More to follow in future videos, perhaps?
Cheers,
Lance

NB. My price action video will give an intro to this, but it's really a much larger topic than can be covered in one YouTube video - more to follow in future.

Feedback:

Hi Lance,

I just wanted to let you know that I truly enjoy your articles and videos. I especially liked your breakout video, and I personally have a very similar strategy on trading breakouts. I do, however, allow myself to enter above the base on only two conditions: 1- if the breakout happens after a bullish mortgage gap in the morning, or 2- if the breakout happens at a major reversal time in a relative strength play and after a shakeout bar.

Anyway, I just wanted to say thank you for a great website. I will tell you that your website is by far the best on the web. You definitely are "My Trading Coach"

Take care, and thanks for sharing your knowledge with us,

Response:

Hey S,

Thanks for the great feedback. You've really made my day!

Am I correct in suspecting some Pristine training in your background? If I recall correctly, the Mortgage play is one that they quite enjoy trading.

Both setups you mentioned are great plays, in that they are based on identifying opportunities in the market where other participants will be scrambling to get out of their losses. This should give a higher probability.

My preference in trading these would be to drop to a lower timeframe to identify one of my standard low risk, high probability entries, and use that to get into the larger timeframe trade. This could possibly lead to being stopped out more often, but it comes at lower risk when I am totally wrong (part of my psychological needs).

Either way, they're great setups. Thanks for sharing them.

Cheers,

Lance Beggs

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