trading on a breakout

Discussion in 'Technical Analysis' started by notafool, Mar 23, 2021.

  1. Tradex

    Tradex

    According to Thomas Bulkowski, a legend in the chart pattern arena, real breakouts pullback less than 50% of the time.
    (Those interested can read his excellent "Chart Patterns: After the Buy" book, for example).
     
    Last edited: Mar 28, 2021
    #21     Mar 28, 2021
  2. padutrader

    padutrader

    all breakouts pull back eventually. because a pull back means weakness so very strong breakouts may not weaken for a longer time

    a pull back may be one bar or even a bar with a big tail.....Bulkowski is very traditional.


    it depends what you are looking for.

    i do not look for perfection.....only money

    Brooks says you can enter on any good looking strong bar.

    the only reason you will wait for a pull back is to reduce your risk.

    Also Bulkowski definition of break out is very traditional........meaning breakouts from a definite range or pattern.

    Brooks is very different ; his definition is very wide and generic.
     
    Last edited: Mar 28, 2021
    #22     Mar 28, 2021
  3. Tradex

    Tradex

    Thomas Bulkowski studied pullbacks (and other chart pattern formations) for more than 30 years, so he knows his stuff.

    But maybe you can share your own studies on that subject, yes ?
     
    Last edited: Mar 28, 2021
    #23     Mar 28, 2021
  4. How about doing your own studies and not just blindly trusting the claims of some author?

    LOL.
     
    #24     Mar 28, 2021
  5. padutrader

    padutrader

    of course he does.....Like Einstein knew his stuff.

    what you have to decide is how relevant it is to where you want to go and what you are trying to do.
     
    #25     Mar 28, 2021
  6. Tradex

    Tradex

    "Some" author, you said?

    Right.

    By the way, how many books/articles did you publish so far on that breakout subject?

    No comment, you amateur.
     
    Last edited: Mar 28, 2021
    #26     Mar 28, 2021
  7. padutrader

    padutrader

    yes.
    trend resumption is the oldest activity in this world after mating.

    once a trend pull back then you can enter-remember you only know that is has pull backed after the fact, in hindsight. you can also enter on the bar that breaks out and sit through the pull back or add there again.

    the pull back will end usually in a DT/DB defined in a general way like Brooks does.

    meaning the DB/DT may not need to be text book perfect: HH and LH also qualify as a DT.

    again the DT is known only in hindsight.

    so once the DT is confirmed then enter if the bar that confirms DT is a good signal bar.
     
    #27     Mar 28, 2021
  8. Tradex

    Tradex

    Care to publish your studies Padu, or should we just take them for granted?
     
    #28     Mar 28, 2021
  9. Monaco

    Monaco

    What about if you fade BO’s in a range market?
     
    #29     Mar 28, 2021
    murray t turtle and Tradex like this.
  10. Tradex

    Tradex

    Excellent comment, the pros usually fade "breakouts" in a range market.

    In fact, and most of the time, they (the so called SMART money people) create these phony breakouts... :cool:
     
    Last edited: Mar 28, 2021
    #30     Mar 28, 2021