Identify breakouts and pullbacks, and only then can you catch the buying point
There’s a joke in this industry: out of ten people who try to trade a breakout, nine die in pullbacks, and the remaining one dies because they don’t believe pullbacks can kill them. Why? Because most people don’t even know what kind of order they’re trading. In their heads, there’s only a vague thought of “making money,” but they understand very little about the market’s rules. True traders, on the other hand, know exactly what order type they’re really trading—and what rules they should follow.
For breakout trades, you’re betting on the idea that “the market has started to change.” After a price range has been moving sideways for a long time, only when it breaks through the resistance level on increased volume is it worth paying attention. Entry can be placed near the breakout level, with the stop-loss set below the breakout candle, or below the key lows of the consolidation range. But a breakout doesn’t guarantee success. Fake breakouts and rallies that immediately fall back are all scenarios you must consider in advance.
For pullback trades, you’re betting that “the trend isn’t over yet.” For example, once an uptrend has been confirmed, the price may pull back in the middle without breaking the original structure—only then is it worth observing. When I filter pullbacks myself, I usually look at a few details: during the pullback, the counter-trend strength can’t be too strong; the retracement can’t clearly damage the original uptrend—especially be alert to levels around 61.8%; and once the price shows a signal that selling is ending, then consider entering, rather than chasing just because you see one bullish candle. Where you place your stop-loss also needs to be thought through beforehand. For long positions, you shouldn’t place an order merely because “it feels like it will rise.” At the very least, you need to know where the trade is invalid. Take-profit can be based on the previous high, or handled in batches according to the risk-reward ratio.
Before placing an order, ask yourself just one question: is this trade actually trading a breakout, or trading a pullback?
If you can’t answer even that, it’s not that the opportunity didn’t show up—it’s that you’re not ready yet.@币神z $ONE
There’s a joke in this industry: out of ten people who try to trade a breakout, nine die in pullbacks, and the remaining one dies because they don’t believe pullbacks can kill them. Why? Because most people don’t even know what kind of order they’re trading. In their heads, there’s only a vague thought of “making money,” but they understand very little about the market’s rules. True traders, on the other hand, know exactly what order type they’re really trading—and what rules they should follow.
For breakout trades, you’re betting on the idea that “the market has started to change.” After a price range has been moving sideways for a long time, only when it breaks through the resistance level on increased volume is it worth paying attention. Entry can be placed near the breakout level, with the stop-loss set below the breakout candle, or below the key lows of the consolidation range. But a breakout doesn’t guarantee success. Fake breakouts and rallies that immediately fall back are all scenarios you must consider in advance.
For pullback trades, you’re betting that “the trend isn’t over yet.” For example, once an uptrend has been confirmed, the price may pull back in the middle without breaking the original structure—only then is it worth observing. When I filter pullbacks myself, I usually look at a few details: during the pullback, the counter-trend strength can’t be too strong; the retracement can’t clearly damage the original uptrend—especially be alert to levels around 61.8%; and once the price shows a signal that selling is ending, then consider entering, rather than chasing just because you see one bullish candle. Where you place your stop-loss also needs to be thought through beforehand. For long positions, you shouldn’t place an order merely because “it feels like it will rise.” At the very least, you need to know where the trade is invalid. Take-profit can be based on the previous high, or handled in batches according to the risk-reward ratio.
Before placing an order, ask yourself just one question: is this trade actually trading a breakout, or trading a pullback?
If you can’t answer even that, it’s not that the opportunity didn’t show up—it’s that you’re not ready yet.@币神z $ONE
