Breakout candle trading 30 min 1hour 4 hour daily

(Symbol yellow)  breakout pullback ,Perfect very good ,usd chf daily 27 04 2010  breakout30min                                                                                                                                                                                                          Breakout  candle trading 30 min 4 hour only and This system can filter out many errors to 90%.                                                                                                                                                         I would like to speak about breakout trades on the Four Hour MACD system. I don't think we have really gone into detail with breakout trades. I, myself, I'm not a breakout trader. I don't think that's... It's a bit risky, but there are times that you can do it. We had it on the British Pound on Friday. You can see that we've used the one hour for a pullback to that breakout level, and then it moved away.

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 sample daily gbp usd 08/7/2010weekly gbp usd 8/07/2010

But there's some other stuff you can look to as well. If you look at the picture I've posted. The inset plan, that's your four hour. It's very important that you can see that TC, trend continuation pattern that the MACD has already given on the four hours time frame. But what happened is that specific candle ran into that top resistance that has been tested previously. You can go on your own chart and make it a little bit wider and see that it has been tested. So, it's a very strong TC signal because of that engulfing there. It's a very nice engulfing candle, but it ran into that resistance, so how are we going to trade that? We expect the price to go up due to the fact that it's engulfing there. It found support on that bottom line. We're just above the 89 as you can see there as well, the blue moving average. It pulled back to the 21, and it moved away. So, all the rules have been satisfied for an up move. If that were not a resistance line there, that would have been a perfect entry. But, because of that resistance line there, how are you going to treat this?

don't trading Figure 30 min So, now, I would like a breakout trade. What is the purpose of a breakout trade? For me, the purpose of a breakout trade is: Because price has been confined into a certain pattern, like a triangle or a flag or whatever you want to call that pattern, whatever pattern is at that specific point, when the price breaks out, it means it's... I want it to carry on in the direction that it broke out. So, I want to stay in the trade as long as possible. But, I don't want to take it the moment it starts breaking out, so I want to have a bit of a confirmation that the breakout trade was true.

And, if you go and look at that 30 minute breakout one we've got there, I've marked that candle there with a little circle that I said was the pullback, but two candles before that was already a pullback. So you could have entered where that green number 1 entry was. On the one hour, it was very nice. It showed it very nice. But, look what happened at entry number 2, that I've marked there. That is a very strong trend continuation pattern. You get an up move and then three little red candles coming down and, then, a very big engulfing candle. Entry number 2, if you missed the first one, that was a sitter! And you sit in the trade as long as possible.
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Right. If there was a breakout on the one hour, it pulled back to the breakout level. It moved away, and then it came down again to almost your entry level. I think you must have... It came down to two or three pips below the entry level number... Not number 1, but on the previous post that I posted there on the thread. You can see there. It came back to below, just about entry level. But the purpose, for me, of a breakout is not to take my stop loss away, to break even very quickly. I will bring it to just below the breakout level, so, if it comes inside and takes me out, well, that's tough luck. But that's the way that you can trade this.









My aim for a breakout trade is to stay within that breakout as long as possible. They're going to try and take you out around just after it broke out because that's the way they do it. That's why they pull it back, because they know there's a lot of breakout orders lying there. They pick it up. Sometimes, they run the price forty pips up, and then they bring it all the way down forty pips, and even more than that because they want to scare you. Where you were forty pips up, now, all of a sudden, you might find yourself fifteen or twenty pips down. But, as long as they haven't pierced the breakout level and brought it right back inside, you're still okay. That's my sign. That's what I'm using.

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But, I wasn't there. I was a bit late. I was out, so I did not follow this breakout trade live. I wish I could have so that we could have discussed as it went on. I saw it. You can read it there that I said to the people that they must wait for the pullback and then the move away. But, you can go to a one hour and even a thirty minutes chart. I won't go to the fifteen minutes, but the one hour and the thirty minutes might give you better insight of the motion of the market. There you can see. Trade number 2, it pulled back to just, almost to the 21 and, then, moved away with an engulfing candle there. There, you could have entered with your eyes closed.









But, it's very important. The four hours must have already shown the direction. That's what that trend continuation pattern on the MACD has already shown, that it is going to be (not going to be). The probability is good that it's going to be a long signal and that it's going to go past that resistance line.









It's unfortunate that that resistance line was there. One cannot leave it out because the price has already found resistance against it previously. We're still within that triangle. It hasn't broken out, but we are also... That triangle lies within a channel, which gives the impression that the price might go above it. It was, actually, sort of a rising wedge. I think we talked about it on the EURUSD as well. You can see that. I also wrote there that I think it's going to break to the top, which it did. So, there were a lot of indications, yesterday that you could have followed and seen that the price went above that resistance, even on the EURUSD . Switch to the one hour and the thirty minutes, wait for that pullback, and then you are on board, and stay in the trade as long as possible

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breakout 1hour 12/07/2010

daily 12/07/2010