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Hello everyone, I want to share an idea and hope some traders in this community will give their opinion on it.
->Breakout in price action is though to find when it is forming. whether it be BO into a AIL or AIS or even a BO from TR, triangles etc.
-> Al shows a long list of behaviors that the market shows when it is breaking out(15D signs of strong BO).
-> Al shortens it and defined a BO, that consist most of the behaviors from that list from video 15D.
-> says that it is a BO when market forms a big trend bar, 2 medium bars, 3-5 small bars.
I understand that the minimum scalp is (average sized bar/2) in that timeframe Or it is 10pips for forex and 1point for e-mini.
But for forex and XAUUSD the size of the average bar is less that 20pips(for most of the time), which means that the minimum scalp is not 10pips and would be less than 10 pips for timeframes 15min and below.
Just because the average size is small we can't change the minimum scalp and it should always be 10pips.
My Question:
Is it ok for me to consider a medium/average size of the bar in forex is 20pips when market shows anything less than 20pips in ATR(14).
which means that the market BO from a pattern like TR, triangle etc. only be considered when 2 bars with size more than 20pips or 3-5 bars that are less than 20pips will be considered a BO from the pattern.
Reasoning:
If market makes more closes below or above a resistance or support means it is a BO. So, more bars that are formed away from the pattern with consecutive bars in the direction of the BO is a BO.
Do give your opinion on it, thanks in advance for your reply. If you cannot understand my question I will find example from charts and try explaining it better.