When you see a buildup form at resistance or support, you want to know THIS strategy.
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1:25 KEY Tips for Trading Breakouts #1
The reason I'm looking for a buildup is very simple, it tells you one thing. For example, in this case, it is formed at resistance and has a buildup form at resistance. What it's telling you is that buyers are willing to buy at these higher prices, right?
1:44 KEY Tips for Trading Breakouts #2
Think about this, resistance is an area where traders are looking to get in the market. Where you expect the price to come down. The fact that the price cannot come down and is hovering at these higher prices, for quite a while in fact, it's about like, what? 20, 25 candles? It's telling you that the buyers are just willing to buy at these higher prices. And this is a sign of strength. Traders are buying at such higher prices because they think that the price is about to breakout higher. So this is a sign of strength and whenever you see a buildup form at resistance, it's a sign of strength. And, the market could possibly breakout from here.
2:16 KEY Tips for Trading Breakouts #3
Opposite of this is what we call the descending triangle. It's simply lower highs into support where you notice that the price is actually making lower highs into support. Telling you that the sellers are willing to sell at this lower price. And so they're just the inverse. Okay?
2:24 KEY Tips for Trading Breakouts #4
The fourth technique I wanna share with you is what I call the re-test. So when the price breaks out, there are times where it comes back and re-test the level previous resistance tested support. So here's an example, price breakout of this height re-test the previous resistance now it can support, price breaks out of it again, re-test previous resistance now it can support. Price then breaks out of this swing high retest previous swing high now it can support. Price breaks out of this swing high or resistance re-test so that it can support. So you can see that, this area in the chart where the price breaks out off in time to come in the future it could potentially act as a level where the buying pressure could come in.
3:26 KEY Tips for Trading Breakouts #5
This is what we call the re-test. So this is useful when the prices breakout and you miss the train you don't have to chase the market because if you're a patient enough, more often than not the market could do a re-test and give you a much more favorable entry price instead of chasing the market and the highs. Okay, and the last technique that I wanna share with you is what I call the strong trend. So this is when the trend is strong and typically is when the price is above the 20MA and in this case is below the 20MA.
If you have enjoyed this video so far, you can go down to my website for free trading strategies and techniques to improve your trading results. Just go to my website, tradingwithryner.com over here the link's at the top. Just scroll down to the bottom depending what you want. Even learn how to write massive trends. To learn about trading your stop loss exists where you can download this ultimate Trend Following guidelines where I will share with you different techniques to actually trade your stop-loss to big trends in the market.
Now, if you wanna learn how to better time your entries, maybe you wanna learn more than breakout. Maybe you wanna learn pullback support resistance, go and download the ultimate guide to PriceAction Trading because that's where I cover that in more details. These two guides are completely free so just go down to my website tradingwithryner.com click this blue button and I'll send it to your email address for free. All right? So with that said, I've come towards the end of this video if you've enjoyed, please see the like button. Any feedback or comment, let me know below I would really appreciate it. And if you wanna stay up to date, subscribe to my YouTube channel and you'll always be updated whenever I publish a new video.
The bigger problem I see with a buy stop order is extreme slippage. Many platforms don't include a limit on this type of order.
Buildups often precede important announcements. The breakout, if it is caused by such important news, can be very aggressive and move far past your order point before being filled at an unfavorable market price.
There seem to be so many positive reviews about *The Lukka Binomial Strategy* it seems to be spreading like wildfire amongst traders which is a good thing it means a lot of traders are winning out there. With this strategy, I make thousands of dollars and it's no joke you can see for yourself by carrying out an internet search about it.
+Rayner Teo yeah i already signed up dude and eagerly ready for premium stuff too, and can you make one video about what is the linear system for your videos ? I mean can you divide them into chapters ?
Thanks for this video. Please tell something about take profits next time. Stop losses look very safe here but Im little confused about TP. I supose that using such SL's requires high win rate in long run.
Awesome video man!
I have something for you to think about, maybe it will inspire you.
Looking at the 1 minute charts, define the noise range as the first 60 of the last 75 bars. Never open a trade within the noise range. Define the false breakout range as the first 15 of the last 30 bars. You'll have two boxes drawn on the chart that encircle the highest high and lowest low of a simulated 60 and 15 minute candle, shifted left by 15 minutes (lagging). When price goes above or below the noise range wait for the newest minute bar to be at least as tall as the ATR(200) measurement before entering a trade. When opening the trade, if the price is inside of the false breakout range then fade the breakout and take profit at either the center or far end of the noise range while trailing the stop from the appropriate end of the false breakout range. If price is outside of the false breakout range then trade in the direction that price is moving and trail the stop loss using the opposite end of the noise range, with no profit target. Filter the trades that have a profit target so that you only enter when the profit target is twice the distance of the initial trailing stop. Filter any trades so that the distance between stop loss and take profit are at least 5 times the spread, or on trades where there is no take profit, the distance between stop loss and open price is at least twice the spread.
Different instruments require different sizes for the noise range and false breakout range, it just depends on the general periodicity and amplitude of intraday swings on the chart. When it's set up right it'll make a few trades on false breakout that take small profit or break even, but mostly it'll catch breakouts that turn into trends after an initial pop. Its weakness is when there's a large pop that appears to be a legitimate breakout, followed immediately by hard rejection that runs all the way through the opposite end of the noise range. Sometimes that worst case happens on news releases, when everyone dumps money in on blind luck trades such as NFP traders who haven't realized that this news release is just a rehash of something everyone already heard a week ago.
XD hopefully that gives you an idea or two for a new video man. Keep up the good work, I like showing your videos to people.
Hey Rayner! Thanks again for all the brilliant stuffs! I have a query- how to trade strongly trading stocks, those which are trading much higher above 20 period EMA? Can we use 9 period EMA as an area of value? Or should we look for flag patterns only in such trending market??
Great advice. That's how I trade my breakout setups as well. Contracting price into explosive move. Mark minervini is expert in this. Check out his book "trade like a stock market wizard". Awesome insight in how to trade breaks with contracting price into resistance and rising volume!
Ur vid content are so educational!!! 👍👍
Could u please do more vid on how to recognize different type of « symmetrical, ascending, descending triangle » and « flags » cuz often they aren’t the same forming the same « shape »
Recognize when it’s about to form ?
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