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Falsebreakout

Is Bitcoin Turning Resistance into Support?Bitcoin has been in a very tight range for the last month, despite halving on May 11. It might not be ready to rally immediately, but the bullish pressure seems to be growing. Today we’re focused on the downward-sloping trendline that’s formed in the last year. It’s been a clear negative for price that needs to be overcome before buyers can return with confidence. The last week or so has been positive on that front as BTCUSD comes down to hold the trendline. Old resistance could be turning into new support, which is usually a positive thing. Another bullish signal was the false breakdown below $8,500 on May 10-11. This was followed by a higher low above $8,600 on Memorial Day. Stochastics are also nearing an oversold condition. Finally, BTCUSD’s 50-day simple moving average (SMA) has risen above its 200-day SMA. This so-called Golden Cross isn’t the biggest deal for cryptos, but it still has some relevance for some chart watchers. Meanwhile, some potentially bullish narratives are also lining up fundamentally as China promotes the idea of a central bank digital currency (CBDC) and the number of hodlers (buy and hold wallets) keeps increasing.
BITSTAMP:BTCUSDLong
by TradeStation
EURAUD 15M BIG BEN BREAKOUT TRADING STRATEGYRule #1 Define the London Trading Range We’re going to use the range definition that takes into consideration only the body of the candles, excluding the wicks. Note* this trading rule can be adapted as you get more experienced at reading the price action. This strategy works because the Asia trading range tends to attract buy and sell stops above and below the trading range. The bulk of buying and selling stops becomes an easy target for the smart money. Remember that traders need liquidity to execute their orders. And, the smart money is always in search of liquidity to fill their large orders. That’s the reason why the smart money needs to trigger those stops. Rule #2: The One-Hour before the London Open Needs to Generate the Breakout Our backtesting results revealed that momentum really starts to pick up 1-hour earlier than the actual London opening session. There are some smart ways to trade this burst of momentum. Let’s see some technical ways to trade the pre-London open. We don’t need to guess in which way the market will break, we let the market tip his hand and show us the way. This is where things get interesting. Let me explain… During the London session we’re going to see the most traded volume thus the foreign exchange market should really take off in one direction or another. Rule #3 Price needs to fade Immediately after the London session opens, we want to see the price fading the pre-open move. If the move starts fading, we know it was a false breakout. Smart money has used the pre-open move to trigger the stops above the range and now they reverse the tie and start selling. We want to see price pulling back into the range at the same speed as it went up. Let me explain… In simple words, the bearish momentum used to produce the false breakout needs to be equal to the bullish momentum used to fade the pre-open move. We enter our trade after the first 5-minutes have confirmed that the price is reversing. Once this trade setup is completed, you should see a price formation that takes the V-shaped form (or inverse V-shape). Rule #4 Take Profit or Ride the Trend We can measure the size of the Asia trading range and project from the top or bottom of our range to get our profit target. But, oftentimes this type of setup can lead to a trading day that can extend in the days to come. Now, in this case, it’s wise if you employ other trading tactics so you can actually profit from this trend. In this example, the better take profit strategy would be to use a trailing stop. You need to be ready to explore other trading methods to manage your trades. Rule #5 Use a Time Stop Instead of a Price Stop In order to fade the London breakout, you need to use unconventional trading methods. In this regard, for our stop loss trading strategy we’re going to use a time stop instead of a price stop. The first time I’ve ever heard about the time stop concept was while reading the Market Wizards book. Billionaire Hedge Fund manager Paul Tudor Jones one of the greatest traders of our times said: “When I trade, I don’t just use a price stop, I also use a time stop.” So, how to apply the time stop to the London strategy? It’s very simple… If, in the first hour after the London open the price didn’t COMPLETELY reversed the pre-opening breakout, we exit the trade. It’s simple as that, no further explanation is needed.
Education
by Tradingstrategyguides
ABT Long, add position to existing trading plan (05/15) Condition: 1. False breakout stopped most of the positions bought in the demand zone. 1.1 After big down move 1.2 consolidation in Demand Zone 1.3 Break through the Demand Zone 1.4 One bar down, next bar up, closed Higher than previous high. 1.5 Up bar closed Higher than Demand Zone; 2. Down Trend line break. 3. 60 min demand zone confirmed Entry: 90 Stop: 87.5 Target: 98; risk/reward=1:3 This is a trading school homework. I need few months to practice trading plan. If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate. From now on, if I got more confirmation, I will begin to add position to existing trading plan.
NYSE:ABTLong
by PlanTradePlanMM
Dow Jones - false breakout to start the selloff - Sell in May?30 Apr 2020 recap - yesterday Dow had an increase of supply together with bearish price action, with the close above the support level 24270. Yet the futures during the London session now has broken the support level and currently testing 23880 level. A break below swing high at 24270 presents a false breakout scenario. If 23880 was broken, we should see a correction to 22950. The next important support level is at 22500 if 22950 was not defended. Bias - down Key levels - 24270, 23880, 22950, 22500 Potential setup - a rejection from 23880 should present a good opportunity for a short entry, with the take profit targets at 22950.
DJ:DJIShort
by mingjong
S&P 500 plunges with a false breakout - daily market analysisS&P 500 futures ( CME_MINI:ES1! ) continued yesterday's selling and plunged more than 2% below 2850 as of the London session now. The price action today before the US session revealed a false breakout on S&P 500. 30 Apr 2020 recap - Yesterday session had seen an increase of supply in synchronization with the bearish price action dropping 1.3% off the top for S&P 500. The only relieve sign was the close was above support zone between 2880–2900. The first support level at 2850 was broken during the London session. Inability to rally up above 2850 would likely to see S&P 500 to test the swing low at 2715. The next level of support is at 2635 if level 2715 is broken. The key level is at 2850. A recovery above 2850 could hold on the long-waited correction. Bias - down Key levels - Resistance: 2850, 2880-2900, 2960 (swing high); Support: 2760, 2715 (swing low), 2635 (axis line) Potential setup - A rejection off 2850–2860 should present a good chance for a short entry, with the take profit targets at 2760, 2715.
CME_MINI:ES1!Short
by mingjong
2
Price Breaking resistance after days of consolidation,***** ^-^Stock price still in consolidation, Price crossed over the 50emv and should be consolidation in the current support and resistance. For confirm position the price should rally the current resistance, 50emv crossover 200emm all together with the price for a confirmation for the execution. mentioned false breakout due to the consolidation period but it may not end up a false break out, if the stock consolidated for a two weeks periods or so on and the price rallied up or down it will be a strong confirmation Further study to be done. Thank you Localogist
NYSE:PWR
by localogist