True and false Breakouts

hi,

all of us know breakouts when true , can be explosive and highly profitable!
but does any one know the high probable method to identify the true and false breakouts apart from just volume analysis. ???????

...........
cheers
winston

smart man!!!!!!!!!!!!!!!!!!
i have read your posts and find u rational and logical , but know i know u r smart man!!!!!!

hi,

all of us know breakouts when true , can be explosive and highly profitable!
but does any one know the high probable method to identify the true and false breakouts apart from just volume analysis. ???????

...........
cheers
winston

hi ashish,
it is great to hear from you! can u explain your method please!!
can you provide the back tested results for win / loss ratio , average profit for each winning trade , can this method work in all the environments of market like bear, bull , volatile to sideways

cheers,
winston

hi,

all of us know breakouts when true , can be explosive and highly profitable!
but does any one know the high probable method to identify the true and false breakouts apart from just volume analysis. ???????

...........
cheers
winston

The method is to add an envelope of 23.6% of the initial swing when the price enters a congestion zone. Will suggest you reading Joe Ross for a better understanding of the method.

Well, there is no method which works in all the markets but it keeps u away from false breakouts in any market.

About backtested results, I would suggest you to undertake the exrcise yourself as I do not undertake such mechanical backtesting exercises.

Best Regards,
--Ashish

Hi Ashish,

How about waiting for a pull back. In some cases we will miss out on opporunity as the script might not pull back but a pull back will get us closer to our S/l and also a low volume pull back and again a up move from the BO point will make sure of us entering more sure trades.

Regards

Rahul