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Thread: Biggest question: reversal or breakout?

  1. #1
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    Biggest question: reversal or breakout?

    Hi there

    in recent months I am working hard to identify it will be break out or reversal.

    I have build my strategy that works fine for reversals, but during US session
    there are nice break outs happens even no news and my reversals does not work on that
    session, except if prices moving near price average of 60 days - that is different story.

    I wantrf to learn to identify it and started using volume indicator.

    What do you recommend and use for break outs, guys?
    Also does thinkor swim better than MT4 platform?

    Tadas

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    advert via signature isn't allowed edited by Gamer

  2. #51
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    Quote Originally Posted by cozard007 View Post
    I do not prefer to trdae the reversal, but I know that the reversal is a very good means of trading that can get traders what they need in the market for success. What traders will strictly know might be a breakout system, but the breakout of the higher time frame is a successful trend of that time frame.
    That might be wise actually since trading the reversal will be very risky after all. if we want to trade the reversal then it will be the best if we can watch the perfect timing for it and we need to always have a good reasoning over what we did too when we do that trade. Or else, that trade will be very dangerous and we might just loss a great deal of money from there too.

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  3. #52
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    Quote Originally Posted by sekiryutei View Post
    That might be wise actually since trading the reversal will be very risky after all. if we want to trade the reversal then it will be the best if we can watch the perfect timing for it and we need to always have a good reasoning over what we did too when we do that trade. Or else, that trade will be very dangerous and we might just loss a great deal of money from there too.
    Well, all trading strategies are for a purpose, and I think traders can make money with them if they know its way of working. I do not trade reversal as such, but if I should make a good plan on reversal, I will make sure that I am trading it with a very right stop loss, and if the reversal strategy is good, the trader will make success using it.

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  4. #53
    Trader musiliu's Avatar
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    I also faced this problem when I am looking for a way to know if market will break a level or will reverse, I am not able to get a way that will accurately determined that, do I just wait for the price to do what bit want to do before I take action, if is is a breakout, I will wait for a good confirmation of breakout and if it is a reversal, I will always confirm it before I take decision.

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  5. #54
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    Quote Originally Posted by musiliu View Post
    I also faced this problem when I am looking for a way to know if market will break a level or will reverse, I am not able to get a way that will accurately determined that, do I just wait for the price to do what bit want to do before I take action, if is is a breakout, I will wait for a good confirmation of breakout and if it is a reversal, I will always confirm it before I take decision.
    I think that looking for such levels will not be easy too. Many traders will not get a good accuracy for that too so we should not expect that we can. But we might be able to wait for a better timing to make our own entries in here and surely once we took an action, we should not regret it too.

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  6. #55
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    It is nothing to me, because the two of them are same thing. You will definitely get to see the breakout with reversal, and reversal with breakout in the market, they are working together, and that reversal means the change of trend, and the breakout out will be that the support and resistance as confirmed another market pattern.

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  7. #56
    Trader musiliu's Avatar
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    First try and understand that most breakout and false and breakout need a lot of confirmation before you trade it, breakout are unlike reversal, reversal are mostly true and are easy to trade with, you can confirm breakout with a trend changing indicator or wait for the price to move back to the breakout level and then confirming a reversal back to the initial breakout direction then the breakout is confirmed

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    Always have realistic DREAMS!

  8. #57
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    Quote Originally Posted by bryTadas View Post
    Hi there

    in recent months I am working hard to identify it will be break out or reversal.

    I have build my strategy that works fine for reversals, but during US session
    there are nice break outs happens even no news and my reversals does not work on that
    session, except if prices moving near price average of 60 days - that is different story.

    I wantrf to learn to identify it and started using volume indicator.

    What do you recommend and use for break outs, guys?
    Also does thinkor swim better than MT4 platform?

    Tadas
    We must understand when the market is close to the support or resistance area. Price sometimes just glued in the support or the resistance area. You can consider my picture below. I have noticed the good trading breakout, after the price is near support, then the price is going to break the support area, and then price break the line, and making good bearish.


    Capture_141.jpg
    Support is the red circle and then the price breakout on the yellow line

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  9. #58
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    That is true because it will be very sensitive to see the area or the price where such a big impact will happen. If we have seen some big impacts on sectors like that then it will be a big problem if we loss the money from fighting the current. The current themselves should be known already just by watching sensitive possible prices already.

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  10. #59
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    Quote Originally Posted by sekiryutei View Post
    That is true because it will be very sensitive to see the area or the price where such a big impact will happen. If we have seen some big impacts on sectors like that then it will be a big problem if we loss the money from fighting the current. The current themselves should be known already just by watching sensitive possible prices already.
    we have to trade carefully for this situations, do not enter so rush but wait for the correct moments and clearly which will give us the results later, but sometimes when we see the fast movements with wide range will trigger the emotion to enter the position and also set the lots size too big because hope will get fast earning and big in a short time too, then, better to hold ourselves from the emotion, discipline is very much important

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  11. #60
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    in trade when any time market touches support or resistant at that time we can be confuse that it will break that support or resistant or it will go back, if we are able to identify that situation then we can easily earn pips we can understand that situation if we wait for some time, because when it touches after some time we can understand its next movement

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