{"id":47201,"date":"2015-12-27T02:30:22","date_gmt":"2015-12-27T10:30:22","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=47201"},"modified":"2015-12-27T02:30:22","modified_gmt":"2015-12-27T10:30:22","slug":"trading-range-breakout-failures","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/trading-range-breakout-failures\/","title":{"rendered":"Ask Al: Trading range breakout failures"},"content":{"rendered":"

BPA trading room Q&A: September 22, 2015<\/h2>\n

Days like this really destroy the progress I\u2019ve built up for weeks. I usually sit aside. I tried today and got tricked into going with breakouts that looked strong. Can you talk briefly again about tips to not get into these awful trading range breakout attempts?
\nAudio duration: 3min 54secs<\/em><\/p>\n

 <\/p>\n

Odds of breakout failures<\/h3>\n

\"Ask<\/a>Yeah. As you can tell from listening to me, I was hopeful at every breakout. A lot of them I bought fairly early or for the bull\u2019s side or sold fairly early for the bear\u2019s side, and automatically scalped out part right away because I knew the odds are that a breakout was going to fail. Days like this, you see 13, 14, you think, \u201cOh my gosh, it\u2019s a bear trend,\u201d and you see 32, \u201cOh, it\u2019s a bull trend,\u201d 40, 41, \u201cOh, it\u2019s a bear trend.\u201d 43, \u201cNo, It\u2019s bull.\u201d 48, \u201cbear\u201d. And you see lots of strong bars up and down. From the first bar of the day—one of the reasons why I pay attention to what happens at the open<\/a> on bar 1, I said, \u201cWe\u2019ll probably get a lot of trading range price action today,\u201d and then I said, \u201c2, 3, 4, 5, 6, 7, 8\u2026\u201d I kept saying, \u201cIt\u2019s probably going to have a lot of trading range price action today,\u201d and then once we started doing this [B14-28], I said, \u201cOh, tight trading range\u201d.<\/p>\n

Get in early—scalp out part<\/h3>\n

So once you know the odds are, either on bar 1 or bar 27, it doesn\u2019t matter. Once you know the odds are that the day\u2019s going to have a lot of trading range price action, for me what I do is I stop looking for swings or maybe swing a small part and switch to scalping every trade or the majority of my position on any trade And if the market continues to breakout and it enters a swing phase, I\u2019m fine—I\u2019ll look to put positions back on. But when I think the day—no matter how strong the breakout attempts are up and down, if I think the day is probably going to have a lot of trading range price action, I resist the temptation to swing, and I never buy high, and I never sell low. If anything, I\u2019m looking for strong bull breakouts to fail and I\u2019m looking for strong bear breakouts to fail as well. So a lot of times I\u2019ll buy—I\u2019m pretty sure I was long on 32, but I get out pretty quickly when it doesn\u2019t continue up, and I do that all day long. I try to enter early enough so I can scalp out part, but if the breakout bar does not give me immediate follow through, I quickly exit.<\/p>\n

Hope—our ‘unhelpful’ survival trait!<\/h3>\n

There\u2019s a natural tendency for people to be hopeful. I think it\u2019s a survival trait. You always have to be hopeful. You don\u2019t want to be wandering through the desert and then give up, and then have your body be found 200 yards from an oasis. It\u2019s a trait that I think was just developed in our evolution. Being hopeful is a survival skill<\/a>—it keeps us going during difficult times. You\u2019re trying to feed your family. You don\u2019t give up at 3 o\u2019clock saying, \u201cErr\u2026 I\u2019ve hunted all day, didn\u2019t get anything.\u201d No, you keep hunting until you get something. You know, you keep hoping that there will be something there. And that works against you as a trader. You\u2019re constantly hoping that the day will turn into a swing day because it\u2019s easier to trade, but until it does, every attempt to turn into a swing trade will be a trap.<\/p>\n

So it just takes a long time. For me, it\u2019s kind of depressing. I dealt with it decades ago, but it was really kind of depressing because it just didn\u2019t seem right. The market is trying to go up; it should keep going up instead of reversing abruptly. And if it\u2019s going down, it should keep going down. But instead, it seems to just reverse abruptly And it just kind of offended my sense of how the world operates—and it\u2019s upsetting. But now, I see it every day. On a day like this, you see it a lot. I\u2019m at the point where, to me, I just look at it and say, \u201cYeah, it makes sense,\u201d right? Everyone wants the swing, and the market\u2019s telling us it\u2019s not going to swing, and therefore every attempt to swing is probably going to reverse pretty quickly because all the hopeful traders will be trapped and they\u2019ll have to get out pretty quickly.<\/p>\n

Al Brooks<\/em><\/p>\n

Information on Al’s Online day trading room<\/a><\/p>\n

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BPA trading room Q&A: September 22, 2015 Days like this really destroy the progress I\u2019ve built up for weeks. I usually sit aside. I tried today and got tricked into going with breakouts that looked strong. Can you talk briefly again about tips to not get into these awful trading range breakout attempts? Audio duration: […]<\/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-47201","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\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/47201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=47201"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/47201\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=47201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=47201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=47201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}