How to Learn Price Action

Discussion in 'Strategy Building' started by SoCalTrader619, Feb 12, 2008.

  1. Hope . . . thanks, that's what I figured.
     
    #151     Aug 25, 2010
  2. Dustin

    Dustin

    3 for 3, if only trading were always so easy.
     
    #152     Aug 25, 2010
  3. wrbtrader

    wrbtrader

    There usually (rarely is there not) is a nearby technical support level if your Long position breakout involved volatility. However, that greatly depends on where you entered after the breakout and if the breakout is really a breakout trade or a momentum trade occurring to far above the actual breakout.

    Simply, if the momentum trade is identified incorrectly as a breakout trade...you'll consistently have problems with trying to find that nearby technical support level or the risk:reward sucks due to chasing too far into a volatility spike.

    Trading Tip: I don't know what time frame you used on your DAKT trade. Thus, sometimes to find that technical support level may simply require changing the time frame only when you're having problems with the time frame of the trade itself. For example, trade was via the 2min chart and you don't see a nearby technical support level...use a higher time frame (continuing increasing) until you see that nearby technical support level.

    Once again, there's almost always a nearby technical support level...you either have the wrong time frame or the trade was momentum trade too far away from the breakout point (disqualifying it as a breakout trade...categorizing the trade as chasing).

    Mark
     
    #153     Aug 26, 2010