Have you ever heard someone say, "No one ever shares their successful strategy?" I could show a dozen or more strategies from exceptional successful traders, but for brevity I'll just show one simple strategy. A strategy that dozens of successful traders have shown us over and over and over. The strategy is to wait for the Market to test a breakout at a HIGH and LOW level on a higher time frames of monthly, weekly daily charts. The strategy is very replicable, in some markets more than once a week. (ONLY NEED 1 OR 2 TRADES A WEEK) Chart below is showing 2 days of data for Gold. If a chart is blown up (as it should be) and not just focused on lower time frame bars. The market action is discernible to anyone but a blind man. Guess what? Hundreds, if not thousands of traders use this simple strategy for profit! If many traders are using this simple strategy for profits, what does that mean? It means that the unsuccessful have no excuse.
Yeah and the better your read and understanding is, this basic principle works on lower time frames too. Wait for a major cleanly defined structure low or high to be broken even by a tick, than once you regain and candle close back above or below, there's your entry with a nice tight stop below the most recently made high or low. Ofc, the lower time frame you go the more context is required and better your read needs to be.
Hallelujah Yes! See, just like you, I learned this from other traders. But, we still get a lot of people who exclaim no one shares what makes them successful. Not sure why people keep believing that. It's actually the opposite, that many do share what's successful, because it works.
If you're referring to a break-out,momentum strategy the problem you'll always be dealing with is 2 groups of sellers: profit takers and short sellers. Short sellers are always hanging around like vultures just waiting to pounce.
I don’t doubt for a second that traders can make money and sometimes big money. However, to consistently make profits is a rarity. I think that’s the key issue of trading. In other words, any strategy or indicator can work but none works consistently. That’s why I never use any indicators or ask for trading strategies. If one wants to be successful in trading s/he has to figure it out all by himself/herself. That’s not to say other traders’ experience, lessons and tips don’t help. We do learn a lot from others. Just don’t expect a complete once-for-all solution.
Did you look at his chart? he isn't describing a break out, he's describing shorts covering above a major high, buyers come back in and when we candle close back below the low = look for a potential short to see if we squeeze out the new buyers. I am not up to date on normal lingo, but pretty sure that's not a break out strategy.
I only glanced at the chart but the wording in his post sure sounded like a break-out strategy description to me. Maybe he can clarify?
Not saying you don't already know this but most strategies are just entry vehicle's with no inherent edge. As well as most people use indicators are looking for a signal to say go long or go short. The indicator tells you to trade every time it triggers, of course you have to have context. Otherwise if every signal worked you'd be a multi millionaire in like days or weeks. If you're using indicators you have to have a deeper understanding of them than that, as well as context to know when not to use that particular entry vehicle or strategy. In the end it all comes down to your decision making and individual read, like you said it has to click for you as an individual.
I'm sorry, but this is why traders like you keep losing time after time. You show your hands to the entire world and hope nobody would notice. To illustrate, Let me refer to the chart that you've posted. Look at the area of breakout where you annotated. Why do you suppose it reversed back down ONLY after 3 bars? It didn't even had the chance to make a double top. More importantly, who do you suppose is behind ALL that selling?? That's right, the institution. Small fries like you and me have no financial clout to do that. So the question is, why would these institutions do such a hideous thing and hurt the retail traders in the process? BECAUSE YOU TOLD THEM ABOUT IT!