Do you not recommend placing buy stops a few ticks above resistance? Or do you always wait for the throwback and place your entries just above the high?
This is exactly right. New support should be in evidence on pullback even if the market runs quite far before the pullback. You may miss a few trades but over the long haul you will be better off by not getting in on the false breakouts. ---Reminder---The second mouse gets the cheese.
Hi Guys, FYI, Just looking over the last week, the majority of my trades are traditional pullback trades. I also made 6 breakout trades, and 4 were successful. I received mentoring from a guy who was quite good, and he didn't teach us how, but it was clearly in his arsenal and I eventually figured some part of it out. Long at 2749 (pullback to S + uptrendline)
ugh....this is like starting from scratch again trying to figure out the stop levels on these. I've bottom-ticked the exit on my stop on three of the four trades I've posted in here....seriously, if they were entries, they'd be epic.