How to Recognize False Breakouts
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- เผยแพร่เมื่อ 6 ก.ย. 2024
- In today's video David Jones will be talking about one of the worst trading scenarios and that is the False Breakout.
Textbooks say that if a trend line breaks, then that's it - another direction is certain. Well, that's not exactly true. Patience is key.
Making the decisions in the right time at the right price makes all the difference. This video will help you make that judgment with more knowledge about the different possible scenarios.
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I love this guys teaching methods, he's very calm and precise
Videos like these are truly invaluable to struggling but driven people. Thank you mate.
Right on bro
Exactly
Delighted to have found you. Your explanations are concise and very helpful!
Hi, Claudia. Great to see you appreciate the tutorials. Make sure to subscribe to the channel and always be up to date with the latest videos - new content every week.
Exactly i met with this one time. Thank for clearing
Trading 212 is one the best channels for learning to trade in the stock market. The honesty and sincerity of the presenters are like a fresh breath of air compared to so many channels who just boast of their achievements and make it look easy or make it look so hard that you are forced to buy something they are selling. Keep up the good work and hoping for an interactive webinar soon. :)
I know I didn't lose a lot of money but the false breakout got me. Didn't wait for the evening star confirmation and convinced myself the trade would go in my favor. My lot size was only a 0.05.
this is the only channel i have found to be really detailing and educational
thank you for the good tutorial
Summary: The answer to "How to recognize false breakouts" is "You wait a bit". The title should really be, "How to profit from false breakouts". Much better clickbait wording and the answer is actually in the video. The answer: "If the support gets broken, you wait a bit to verify. When it comes back to the resistance (previous support), you enter a position with a stop-loss just below the resistance." There you go. Saved you a bit of time. Now learn something much more useful like RSI.
Indicators are useless (except for MA)
@@niggabitch7045 No one is going to take advice with that name
Thanks for the Summary. (However, Rsi is a loser)
Nothings a loser with a proper exit strategy, money management and position sizing. You can be profitable by flipping a coin to decide your trades if you wanted
in unidirectional trending market and volatility index is low, RSI fails pretty badly.
Trading breakouts
1.) See if price breaks support or resistance line.
2.) Wait for next candle confirmation to enter the breakout.
3.) Stop loss place just below or above the support or resistance line.
Trading false breakouts
1.) After price breaks support or resistance line wait for next candle confirmation to enter the price reversal.
2.) Stop loss place just below or above the support or resistance line.
i saw your youtube video tutorials on trading breakouts and false breakouts, these are the rules i understood from your videos on breakouts and false breakout.
Would it be better to set a buy stop position just above the breakout candle during a breakout on a resistance line at the same time set a sell stop position just below the resistance line candle, from this if a false breakout occur by sell stop position would be triggered and if a breakout took place in this scenario my buy stop position will be triggered and the trade would still go in my favour whether it continues to go up into a breakout or goes back down into a false breakout.
Mate. You’re a legend. Thank you
Very informative and helpful - even 2 years later. Thankyou!
Trading 212: David: I sincerely appreciate your effort in regard to this video, especially where you apply the ultimate in common sense to trading as it should always be.
At the video time of 14:10 minutes, even you stress that this doesn't work all of the time (to be fair, 50/50 percent). This may sound trite, but this is the most salient sentence of all trading training videos: the reason we apply stops and profit targets -- for, *we will always know that these will work -- ALL of the time.*
At around the 8 minute mark play close attention to the inside price bar on gold that retests the 1235 area. That's what ignited the reversal to the upside. Inside and outside price bars as well as engulfing patterns showing up when testing major levels creates an approximate 80% probability trade. The patience required to watch an asset until this pattern shows up is what kills traders accounts.
I've watched only 2 videos of you sir, and I'm already a fan 👍. Easy to understand and nice way of explaining.
Love you to hear more. You are the first person I found that speak teachnicaly about binary trading
Thank you!! It's good stuff people like yall do. Helping a lot of traders (including me) with this
The most informative and educational channel!! Learning a lot from this. Thank you very much! :)
Excelllent british accent.. superbe explanation..!!! Great Dave...!!!
I really like british accent..hehe
What is British
9:39
Wouldn't expect that to break out.
Would expect reversal.
Classic pattern.
Yes . Taking sell stops and then coming back higher to take their stops happens 90 percent of the time . Please guys check 20 pips consolidation zone in eur usd or gbp usd . 1_Draw ur zone of the 20 pips second : go to 15 minutes time frame and see how many false breakouts that happened before actually breaking out with 60 pips of your 20 pips zone up the higher level and lower of your bottom level . All of those false breakouts are very profitable trades
Wow! TH-cam has just brought me back your channel, many months after I added your channel to my list of sources to learn from (and your channel is the first in that list) :) And the timing is good as I have learned much since then.
Welcome back 🙌 It's nice to hear you're enjoying our content.
I like the calm attitude of David, he makes it look easy
Hello David ! Really enjoy your education videos. Very down to earth teaching.
Such a quality content. Very self explanatory
Great video. Most times the false breakout is what actually happens. Unless the breakout is confirmed with major momentum and on a fractal price zone.
I am learning lots just by watching your videos. Do you trade for people?
I'm learning a lot from these videos I'm a beginner
Still incredibly useful 4 years down the line!
the term your missing is "overthrow"..... when the price moves slightly past a support or resist.
hi im from India.. your video help lots... i learn lots of technique watching your video..
hi I'm from america
Please explain the different strategies for trading options. Please explain the difference between strangle and straddle.
You're good man for sharing the knowledge. Thank you.
thanks for sharing your great informations.. waiting for more videos
Great video. I have seen tons of examples of false breakouts, this knowledge really helps.
Thank you sir. Hats off to you and stay blessed.
A very concise, clear and helpful video. Thank you!
HOW TO SPOT Fakeout: look for M or W
Thanks for sharing this knowledge on recognising false breaks
Nice to see you are happy with the video, Peter. Subscribe to the channel and stay tuned for more content from Trading 212.
I think you should also provide some fail example too. It loos so easy to do but somehow very difficult to implement.
Ie. prices can go in any direction with equal probability
Thank you so much. Very easy to understand
Thank you for sharing your knowledge, I been Trading since 2008 and still find all your videos extremely helpful and reminders of lot of small things that I have forgotten, I really appreciate all of your videos, god bless and stay green
You profitable?
thank you.....
remember to set stop loss folks. protect your money so you can trade for a long time......
@@ronaldmc9951 better to be a pussy than an idiot
Same Old Story : Read from the Past Candles ... Trading is about Dealing with the Future ... :p
Very clear and simple. Thank you!
Thanks for the video. It is really helpful. Can you please make video on trading with bolinger band for intraday and short term trading
Hi, Kamlesh. Your suggestion has been noted. Thanks for taking the time to share it.
What are your thoughts on bitcoins and alt coins ?
can you please make videos on top-down analysis and trading using order blocks
Thanks for reaching out, Mary. Your request is appreciated.
thank you so much for the reply!! your teachings are so concise
Great videos-Ive learned more in a week watching your vids than I have in 6 mos of other vids. Thanks!
Why don't you use volume on the chart which is the best way to guess false or real break out!!!🤔🤔 Is it different from stock market?
Hi, it's a habit (maybe a bad one) that I have never got into because in the early days there was no real volume available for forex. But as you say, it's another way you could try and confirm the validity of the breakout.
My thoughts: what may seem like a "false breakout" on a higher time frame may seem like a full breakout on a lower TF.
That's a great channel! Thanks for sharing all these valuable information. Keep up the great work :D
great video, a clear and comprehensive picture of false break.
This is all well and good but the key to these situations is position sizing and startegy implementation. These are great spots to use spreads so you dont get chopped to pieces trying to use a stop. Either use a verticle spread in the direction you choose and you put time on your side so you have exposure with defined risk. Or slap on a straddle and simply take off the profitable side when whichever move happens is exhusted and let the other side ride for future consolidation or you can turn the losing side into a credit spread while you wait. Using stops in these situations is suicide.
Hey there, first time viewer here. I really appreciate the content and advice. One thing you haven't mentioned, and maybe that's because you're looking at hour candles and days or weekly candles, but volume. You haven't mentioned anything about the volume with trades during these breakouts or false breakouts. I wanted to hear your opinion on volume with breakout predictions and why you didn't bother mentioning this. Happy green days!
Dear Mr Jones
I'm from Iran really your videos are very help full and really I enjoy watching your videos will you please talk about the parabolic dots also?
Great tips.
What is your take on using Fibonacci retracements for looking for these false breakouts?
You can watch these videos about the Fibonacci Retracements:
What are Fibonacci Retracements - th-cam.com/video/Ytr__kKKYBA/w-d-xo.html
How to Trade Retracements - th-cam.com/video/Kz6-8nQLRHM/w-d-xo.html
Thanks for explaining things a novice could understand. Subscribed.
Another great video! It would be really helpful if you could explain fib fans, arc, and circles in future videos!
Thanks for your contribution, Josh. Will take your comment into consideration, as usual.
@Trading 212 you talked briefly about stop losses. What's your thought on Market Makers purposely triggering stop losses so they can buy a retailer's position and then the price continues higher. I know traders that don't use stop losses because they don't want Market Makers to be able to see them.
Ok, I guess I will definitely end up being a very good trader because I am just 2 weeks in to trading and have already figured this out. This is my first time seeing this video. This has given me great confidence as i have already made successful trades doing exactly this.
What program or website do you use to search the graphics?
Hey Andrews, the trading app is Trading 212. Check it out for free with virtual funds at www.trading212.com/en/Open-Practice-Account-GBP.
I usually use a 1.5 ATR from the support or resistance level.
Excellent advice on stop loss placement. Thanks for the video!
thanks gave me an idea for breakout trading both genuine n fake
How about combining those false breakouts with indicators like the RSI or MACD orCCI or even Fibonacci retracement?
Sure - the only problem with e.g. RSI is if the market is breaking to new highs for example is that it will probably be giving a sell signal. But looking for extra confirmation is a fair enough idea.
212 you guys are a trove of knowledge...straight up great content..thanks so much for the good info...definitely learning so much!
T5yll4
sock/meat puppet?
This channel has taught me so much in just one day. Thanks!
Good day, sir.
Excellent session, but please:
shouldn't volumes help a lot ?
Best regards.
Doing this strategy with candles of greater time periods, would the strategy in theory have a less frequent success rate because doing on a larger time frame like days, it would mean that the strategy is more exposed to macroeconomics shocks and also economic shocks within the firm (if you were trading in stocks).
Nice video and very good tips.
Great video, trading come with a lot of benefits And I have just bought my second house through it. As a beginner I was scared of loosing my savings but I’m glad I took the bold step that is now favoring me.
this is a great tutorial David. Thanks a lot. I have a small question. I am a complete novice in forex trading. I have 2 questions/arguments regarding the stop loss order. Please correct me if I am wrong:
- In order to avoid being caught on the wrong side of the trade, I can set a wide stop loss even if it leads to poor risk reward ratio; and adjust the stop loss (hence the risk reward ratio) by moving the stop loss to break even and or beyond as trade moves in my favor. I think in order for this to work I should have a wide timeframe. At least a day. Is this the right way please?
- Another way that I would use is to put a wide stop loss, monitor the trade, and cancel the trade if it is moving against me (before the stop loss is triggered). Again I find this way to be possible with longer timeframes. Is this right David? Again thanks a lot for the videos.
Hi there. The following videos about Stop Loss might be of interest for you:
The Disciplined Way To Move Your Stop Loss Order - th-cam.com/video/hkKwPn56vm0/w-d-xo.html
3 Tips For Stop Losses - th-cam.com/video/nZeavIuaXrA/w-d-xo.html
Managing Your Stop Loss - th-cam.com/video/ip9Zu6J5WZQ/w-d-xo.html
Moving Your Stop Loss Order - th-cam.com/video/UGTtALb0VXs/w-d-xo.html
Where to Place Your Stop Loss - th-cam.com/video/KQW2x86BH1U/w-d-xo.html
Would you consider this to be a major support line that has been tested and broken through? It seems if we master support and resistance this will help us gain more insights to what to expect during the possible breakout and bounce back.
I always been tricked with false breakout and losing money, but this video is really helpful. I will never been trick again...
Never quote Justin Bieber
Be*
thank you! very clear explanation and easy to understand presentation
Another great video. Thanks. Who the ... feathers... down votes these videos!?
Excellent video. Very well put together. I have one thing to add though.
According to the false breakout example with the USD/JPY, the false breakout can also be recognize by the smaller and smaller size of the green candles. This indicates that the buyer momentum is dropping. Wysetrade made a brilliant video on this exact pattern explaining it in greater detail.
Otherwise still a great video!
Forgive me if I sound ignorant... But why wouldn't you just pull up a volume chart and then you can see if moment is really dropping.
thats not a false breakout but a confirm of the level previous gained, which means a continuation in the previous direction (in this case up)
I'm having trouble getting the right timeframe. The same course, at the same time, reveals different trading actions in different timeframes. In addition, I often lose track when switching between different timeframes. Especially if the screen is automatically rescaled each time. Please explain how you deal with it. I would be very grateful.
David, I absolutely adore your videos and the manner in which you bring the information. I had a question about your small monitor on the right, do you have it set up as a touchscreen/serving any non-standard purpose?
context, set up, and ... follow through
very good technical video. thanks!
great video's, they brought me from crypto noob to trading nicely in under a month.
Thank you for sharing your knowledge. You explained this very well.
great video learned soo much
Please trading212 the tutorial about money management
I just wanna say that was wonderful thank you very much nobody has taught this as well as you , thanks sir
All I got was that it could turn when it breaks out. But really how to tell the difference. There are instances where it breaks out looks like it's false then continues to break through. Should compare a false with a true breakout and see what the differences are.
nice video, there are so much ways to trade false breakouts and these are definitely great examples.
I have literaly decided to take EVERY double bottom formation as it has a relatively high reward system even if the lowest return is 5 pips.
but do you trade at the moment of the breakout, or do you wait the pullback first to trade? because you can be buying in a resistance level and selling in a support level..
You are helping us so much.. thank you
Many thanks for this video, very helpfull. With what indicator would you combine the analysis you explained?
Great Video, Thankx a lot David
your videos help out alot thank you very much.
Well presented David. Thank you. Would you say a retest of a breakout level increases chances of a trend continuation?
Nicely explained.
I always watch all your videos. I feel like I can't learn this skill. In the meantime I have to continue to watch these videos.
You can learn anything, Lori. Anyone can
Excellent learnt more off you than anyone else
Thank you for your simple and helpful way.