Showing posts with the label intraday breakout trading strategy


WHAT IS BREAKOUT TRADING Breakout  trading  can  be  summarized  as  getting  in  once  the  market  starts moving,  and  getting  out  when  it  stops. While simplistic, this is the epitome of successful trading. You cannot make money when the market doesn't move. And the best place to get in is right at the start. Yet, breakout trading seems to have a bad name nowadays. Popular writers like Al Brooks continue to teach that 'most breakouts  fail', so  it's a bad idea to trade them. 'Wait for a pullback,' they  say The problem is that many strong trends don't have pullbacks, or have pullbacks that are late, offering lesser profits. It can drive a day trader mad waiting for a pullback in a strong trend that never happens, while  the  price  skyrockets. It  isn't  logical  to  identify  a  trend  start  and  not enter,  waiting  for  a  specific  chart  pattern  to  form  that  may  never materialize. The trends on long-term charts and short-