Reliable trading strategies. Breakouts.

One of the best trading methode is to trade breakouts. Trading breakouts is a very simple yet reliable strategy. I will post a few pictures below to see what I mean and to let you practice at home on a demo account until you get it. You can trade breakouts on any TF. Whatch out:

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Comment by Daologic on July 10, 2013 at 11:37am

Here is more:

Comment by talisman on July 10, 2013 at 12:03pm

do you have a way of filtering out potential breakouts that are likely to fail? no doubt you are correct in looking for breakouts as a way of catching potential moves, but there are as many failed breakouts as non failures.  this has been the discussion of many an article.  

many people feel the breakout is better traded after waiting for the retrace to breakout area and resumption of trend. the risk is of course the pair never retraces and you miss the boat, the advantage is the potential better entry after the the breakout has been established and the lower probability of the breakout being false.   

good post, and thanks for taking the time to share examples.

Comment by Daologic on July 10, 2013 at 12:31pm

Hello Talisman and thanks for your comment. The truth is this, when I say Holly Grail I do not mean 100% winnings and the truth is this, in any strategy will be false signals. You can not filter all the signals but when you deal with breakouts there are a few ways to filter them, one is to take a look at  a bigger time frane, the other is to consider the Fibonacci levels, the other to consider the most closest S&R levels or to see where the supply and demand is.

I do have my theory about brain and learning processes and I think that the more you practice the brain will learn and start to automaticaly recognize this breakouts as valid or not. This is not a precise science. This is why the discussion on this subject is open.

The Holly Grail nr. 2 I will consider to be the Ichimoku and in a next post I will show how to use Ichimoky, in any time frame in order to have as much as psible winning trades. Ichimoku is simple to use but again, it requires much patience.

Comment by Daologic on July 10, 2013 at 1:16pm

Another picture with another breakout, unfortunately I do not have time to trade them all but I'll do my best:

Comment by Daologic on July 11, 2013 at 8:45am

I have changed the title of this blog post.

Comment by Daologic on July 12, 2013 at 11:41am

Hi Geoffrey! Mabe you reffer to, let's say Sam Seiden style of trading breakouts which I know is a good way. I will post it here too. On the other hand I am not so sure the institutions want you to trade in one or other way, I think institutions have their ways of trading.

If you take a closer look to my pics here you will see that it is not quite seling at bottom and buying at top.

Thanks for your comment!

Best regards!

Comment by talisman on July 12, 2013 at 11:48am

hi Geoff-good point.  I think you re bang on, although like most things in trading its easier said than done.

Comment by Daologic on July 12, 2013 at 12:15pm

I will check, thanks!

Comment by Daologic on July 30, 2013 at 4:13pm

Another example of the BREAK OUT OF THE BOX on GU. First picture is the analysis time frame, 1 hr., where we make the box. After we make the box in 1 hr., we go to 15 mins. for the entry.

The secret is, we do not chase the price, we wait for the price to come tu us:

Now, I wait for EURUSD to breakout of the box, I will wait for a retracement and enter after a rejection of the price by the lower line of the box:

Comment by Daologic on July 30, 2013 at 5:19pm

Trading the breakout from the BOX of USDCAD, in the future, THIS IS UNDER DEVELOPMENT.

Keep an eye on the USDCAD and the box.

After the breakout from the box go to 15 mins and wait for a retracement lower of the price on the box and enter after the box is rejecting the price in 15 min TF. 1 hr is the TF for analysis and 15 mins is for entry, take a good look at this technique above at GU:


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