{"id":58515,"date":"2016-09-25T01:45:16","date_gmt":"2016-09-25T08:45:16","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=58515"},"modified":"2018-03-25T06:46:51","modified_gmt":"2018-03-25T13:46:51","slug":"breakouts","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/ask-al\/breakouts\/","title":{"rendered":"Ask Al: Breakouts, when to exit or hold?"},"content":{"rendered":"<h2>Breakout pullbacks &#8212; Exit or hold<br \/>\n BPA trading room Q&amp;A: October 2, 2015; June 28, 2016; July 6, 2016<\/h2>\n<p class=\"content-box-green\">Question 1: Al, if you buy a breakout, how do you determine when to get out breakeven and when to hold through the pullback?<br \/>\n <em>Video duration: 6min 02sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/a49adfbb1318e6c22c\/a30d4d1ad23b687d?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/dtvltohYFgk\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h3>Scalp or swing?<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-1.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-58525\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-1-300x210.jpg\" alt=\"Ask Al Brooks Breakout Pullback Trading\" width=\"300\" height=\"210\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-1-300x210.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-1-768x538.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-1-600x420.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-1.jpg 849w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>For me, it depends on what your goal is.\u00a0 This comes down to scalp versus swing.\u00a0 If I\u2019m buying a <a href=\"https:\/\/www.brookstradingcourse.com\/how-to-trade-manual\/trading-breakouts\/\" target=\"_blank\">breakout<\/a> and I\u2019m doing it for a scalp, I don\u2019t want the market to come back.\u00a0 I\u2019m pretty quick to get out.\u00a0 If I think that a pullback is acceptable, a lot of times I\u2019ll scale in during a pullback.\u00a0 But if I\u2019m looking at a pullback and I\u2019m saying, \u201cWait a minute, it should not be doing that,\u201d then I get out.<\/p>\n<p>For a swing trade, depending on how big of a swing, and how far the target is, you have to allow pullbacks.\u00a0 You have to assume that there\u2019ll be pullbacks. As long as your premise is valid and as long as the market &#8212; in this case, a bull trend &#8212; as long as every pullback stays above the most recent breakout low. So breakout low &#8212; if it stays above that, it\u2019s still long. Breakout low, stays above that. Breakout low, stays above that. Breakout low, stays above it. Breakout, stays above it, right? As long as every pullback stays above the prior strong leg up, the premise is still valid.\u00a0<\/p>\n<h3>Reversal signal<\/h3>\n<p>Sometimes you\u2019ll get a reversal signal before the market falls below a low.\u00a0 So let\u2019s say you\u2019re long up here [B44\/45], your stop is down here [below B38]. But let\u2019s say you decided to short below 57 or below 64, taking a chance for a Major Trend Reversal, that\u2019s okay.\u00a0 So, you can get out even though it\u2019s still Always In Long.\u00a0 But the Always In Long bulls strictly speaking, until they see a strong reversal down, they stay long as long as it\u2019s staying above the bottom of their last leg up.<\/p>\n<p class=\"content-box-green\">Question 2: When there\u2019s a breakout like 61. While it is happening, how do differentiate from 28 or 38, to enter with market orders? How do you know how large the bar will be?<\/p>\n<h3>Always review context<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-2.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-58526\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-2-300x262.jpg\" alt=\"Ask Al Brooks Trading Breakouts\" width=\"300\" height=\"262\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-2-300x262.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-2-600x525.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-2.jpg 669w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Okay, so he\u2019s saying when you get a breakout like 61 right here and he\u2019s comparing it to 28 or 38, 38 or 28. Now first of all, context is a little bit different. Here we get a wedge bull flag, we\u2019re getting late in the day, 11:30. For trend resumption or trend reversal. And then also as 61 was forming, I tried, it was going up very quickly\u2014I placed a limit order to buy a two tick pull back. And instead of pulling back, I went up like three or four ticks and I was thinking to myself, \u201cOh, that\u2019s bad. That\u2019s bad. I\u2019m going to get trapped out.\u201d So I just hit \u2018Buy the Market\u2019 and I keep my fingers crossed.<\/p>\n<h3>Decide quickly<\/h3>\n<p>It\u2019s like when you are a kid, you\u2019re jumping off a high board for the first time. You stand up there and you hesitate and then you say, \u201cI\u2019m just going to do it.\u201d So you bring your arms in tight and your knees up to your chest. Your cheeks are puffed up, you pinched your nose, your eyes are squeezed really hard, and you just jump and hope for the best. So when things are doing that, when they\u2019re going up really quickly, you just don\u2019t know. You have to decide quickly.<\/p>\n<p>I knew that I wanted to buy and I usually try to buy with a limit order. And I probably did buy on a limit order on 28 or 27 or 37. Because that\u2019s what I typically do. But here [36\/49\/57], I thought that we had a wedge and a micro double bottom like we\u2019d go to the bottom and that we had the potential to get up to the 60-minute moving average for the high of the day so I thought there was a potential for a breakout.<\/p>\n<h3>Look for trend resumption or reversal<\/h3>\n<p>And it\u2019s really easy to get lulled into indifference when you\u2019re in a sideways market for 2 hours like that. But around 11, 11:30, 12, I always start to pay a lot more attention. And I look for trend resumption or trend reversal. So, for me, you\u2019re saying how do I know 28 and 38 are not going to be strongly bullish. Well, first of all, 28 &#8212; tight bear channel \u2013 it\u2019s probably a minor reversal. And 38, right now, it\u2019s a second leg up in a trading range day, and it\u2019s just not all that big so I\u2019m not too certain about that.<\/p>\n<p>Here, we\u2019ve got a wedge higher low and a very big bull-bar, the biggest bull-bar of the day, and we\u2019re breaking out of what I think is a wedge bull flag or a triangle. And I tried to buy and could not buy the way I typically buy. So it\u2019s probably something atypical about what\u2019s going on. The character of the market might change.<\/p>\n<p class=\"content-box-green\">Question 3. You mentioned that you missed the buy on the close of 61. What told you that it was a breakout while still in a sideways trading range?<\/p>\n<h3>Limit order bars<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-3.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-58527\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-3-300x209.jpg\" alt=\"Ask Al Brooks Missed Buy Trade\" width=\"300\" height=\"209\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-3-300x209.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-3-768x535.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-3-600x418.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/09\/ask-al-78-trading-breakouts-3.jpg 839w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Well, two things. You\u2019ve got this big-bull reversal bar, you always hear me talk about those bars being limit order bars with sellers above. Those sellers are scalpers. If the context is good, here we\u2019re in a bull trend, at the moving average, I think most of the time you make a profit buying above 58. But you need a wide stop. And the alternative is instead of buying above 58, you place a limit order to buy a 50% pull back. And then 61, now we have a second entry buy setup, with closing on its high at the moving average. To me, that\u2019s even a higher probability buy than buying above 58.<\/p>\n<h3>The right thing to do<\/h3>\n<p>And [second thing] I talk, sometimes have stuff I have to do on the phone, doctor\u2019s appointments, and contractors, who knows what. And my mother sometimes calls. She\u2019s always amusing to me.<\/p>\n<p>What happens is, she\u2019ll call and she\u2019d say \u201cAl. Did you call?\u201d And I know what she\u2019s saying \u2013 she\u2019s saying that she\u2019s lonely. And she may be faking it. I don\u2019t know, maybe half the time she says that nobody called, and she just wants to talk to me. So I say \u201cOh? No Ma, but I can talk.\u201d So whenever she calls, I always take the call. I always speak with her a couple of times a week. And that results in me &#8212; it costs me money. But it\u2019s still the right thing to do so I do it.<\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>Breakout pullbacks &#8212; Exit or hold BPA trading room Q&amp;A: October 2, 2015; June 28, 2016; July 6, 2016 Question 1: Al, if you buy a breakout, how do you determine when to get out breakeven and when to hold through the pullback? Video duration: 6min 02sec You can also view this video on Al&#8217;s [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-58515","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/58515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=58515"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/58515\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=58515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=58515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=58515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}