The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Brooks Trading Course affiliated social media
Take profit and manage trade when trading breakouts
Here I have 2 questions when trading breakout.
Should I take profit for a MM or trailing stop after each BO?
Should I manage trade by price action or just leave it to run (hit TP or SL)?
I tried trading BO for 2 weeks take a decent number of trades but still result in a BE.
Course videos on breakouts should help you (41A - 41D). Specifically 41D covers Stop Management when trading breakouts.
Some ideas in general:
If a bull breakout happens early in the day (e.g. opening reversal setup) and the opening range is small relative to the daily ATR, and HTF context supports the direction, and the BO is so strong it's expected to start a new trend then it should be ok to enter the trade at any price and just hold for MM since probability is >60% (Video 41A) Can also watch Patterns On the Open video for more on opening reversals: https://www.youtube.com/watch?v=lg7P7zkPj4s
Regarding stops - if expecting a bull BO to start a new trend:
- Ok to put stoploss below the bar that started the BO
- Ok to put stoploss below a bar if it's very big
- Ok to put stoploss a little beyond 50% PB since limit traders will probably buy there
However, if a bull BO is weak and there's a possibility of developing a TR after it (but not a reversal) then better to keep a wide stop below the start of the whole leg (not just below the breakout).
Regarding trailing stops. If swinging, stops can be trailed when there is another strong BO creating a major higher low/lower high. For bulls, trail to below a prior major higher low that led to new bull BO if seeing context as a trend. If falls below prior major higher low than not trend anymore = premise change, so exit. However, if entering for scalps only then it's OK to have tighter stops below the entry bar and go for 1:1 since the probability of win high.
Hope that helped!
BPA Telegram Group traders win breakouts 60% of the time, every time.
I watched all BO videos but I think I need to learn more to expand my undersanding.
Thank you so much for your comment Mr. Carpet