Breakout Trading: Strategy to Finding Intraday Breakouts
In today's video I go through breakout trading and how you can find and enter intraday breakout trade setups.
In a lot of our charts in focus that we post in the weekly trade ideas, we are either looking for price to breakout or make quick break and re-tests.
The reason for this is because price ranges and consolidates far more than it trends in obvious free-flowing moves.
When price does breakout of these consolidation and range patterns it will often do so in a hurry and open the way for price to move aggressively with a lot of trading opportunities.
I am often asked by traders;
#1: What is breakout & re-test trading?, and;
#2: What time-frames should be used to hunt quick breakout trades?
Today's video goes through two examples of how these breakouts can be played as well as a current chart showing how this pattern is repeating in the markets right now.
Tools and lessons discussed in this video:
How to Create Different MT4 Time Frames
Weekly Price Action Trade Ideas
Any questions or comments please leave in section below;
Safe trading,
Johnathon
Johnathon,
In case of down trend after seeing price action setup on smaller time frames first re-test of old support that turned new resistance, what types of extra indicators i can use to support my price action before I place entry order ?
Thanks
Hard concepts easy explanations!! Many thanks!!
👍👍
Hi Johnathon
I am a Newby in many ways. You teach that traders such as myself should stick to the daily charts until we get some experience and our plan is working. Would you recommend we use intra-day charts to enter break out trades.
Thanks
John
Hi John,
there are a lot of strategies to learn and you don’t have to start with them all at once.
The reason we recommend higher time frames to begin is simply because it helps new traders a lot.
I also recommend finding just one strategy at first and mastering it whether it is false breaks, reversals, breakouts, one entry trigger etc, etc and then moving to another and another.
When trading breakouts specifically, moving to smaller time frames helps a lot to get into the more explosive more and helps us read the quick / break and re-test that we can then take advantage of.
Safe trading,
Johnathon
Hi Mehdi,
if you get a chance have a read of https://www.forexschoolonline.com//first-test-support-resistance-price-action-trading-strategy/ as that goes through in more depth.
However; a price flip is a level where price has broken a support / resistance and flipped to hold as a new support / resistance.
Safe trading,
Johnathon
Hi Johnathon
thanks a lot for this video of first test S/R strategy
should we always go to lower tf for signal? or if we couldn’t find the signal at lower tfs or got stopped out , can we take daily signals? just like the pin bar we have in daily tf of eurgbp on Friday(yesterday), having my S line at 0.8700
thanks a lot
Hi Mehdi,
watching for a fast break and quick re-test is just one strategy that you can use to find trades.
Trades can be made on the daily time frames using major levels, trends, price action story etc,.
Safe trading,
Johnathon
Hi Johnathon
what is the difference between price flip area ,S/R lines and major levels?
Hey Johnathon thanks for this video, it was awesome! I have a question about seeing the breakout on the higher time frame, then going down to the lower time frame. When we see the current candle on the higher time frame breaking past the major level, should we wait for the candle to close to confirm that it is a breakout candle, or should we look for retests on the lower time frame while the higher time frame candle is still forming?
Hi Denika,
whilst looking to see how aggressively price can or cannot close above / below a level is a great clue as to what price is looking to do, you don’t always have to use it to look for smaller time frame trades.
Depending on how small the time frame you go to, if you wait for the close you will often miss the fast break, first test and continue.
When you see price breaking you can look at the price action on smaller time frames to see the first re-test and what exactly price is doing at the old support / resistance.
Further on this is at these two here;
https://www.forexschoolonline.com//first-test-support-resistance-price-action-trading-strategy/
https://www.forexschoolonline.com//ultimate-guide-marking-support-resistance-price-action-charts/
Safe trading,
Johnathon
Thanks for responding to this. Truthfully this topic had never been clear to me until now. Your explanation makes so much sense.
#youthaman
Awesome.
Safe trading,
Johnathon
Video is too short hahahaha… want some more..
Anyway.. thanks for sharing the useful tips.. 👍👍
Thanks Azlan 👍
You can find a heap more videos at; https://www.forexschoolonline.com//forex-videos
Safe trading,
Johnathon