I love trading breakouts.
Why?
Because you can be profitable on your trades right from the start.
Now you’re probably wondering:
What about false breakouts?
Well, you can’t avoid it completely (it’s the cost of doing business).
But:
You shouldn’t stop trading breakouts because the REWARD far outweighs the risk.
So…
Here’s what you’ll learn today:
- The worst breakout trades to avoid (at all cost)
- The 3 things I look for when trading breakouts
- How to find the best breakout trades
I know you’re going to enjoy today’s lesson.
So, go watch it right now:
Once you’ve had a chance to watch, I’d love to know…
What are the things you look for when trading breakouts?
Leave a comment below and let me know.
Do you want to learn a new trading strategy that allows you to profit in bull and bear markets?
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Excellent video. Very helpful. Thanks Rayner
You’re welcome, Gilles 🙂
Good as always Thank You.I wish a have more free time and energy to learn more and trade more often, I am a truck driver.
Cheers bud
Thanks, Rayner. Great video with clear explanation.
Don’t mention it, Lucy.
Glad to be of help!
Rayner
Thanks Rayner! Understand in some situation, like in US market, many investments are marginal 1 : 10 with 10% stop-loss or release of stocks. Most influential big players if they want to enter, they usually drive down 10% more first before the turning point of up-trend.
Do you have any advice on how to trade such scenarios?
E.g. SIG in NYSE
Hi Astor,
You can consider trading more liquid stocks with don’t get manipulated as much.
Rayner
good sharing
Thank you, Vanness.
Rayner once a breakout occur should I wait for second candle before entering let say on tf5min because I often hit my stop loss if I enter upon breakout and it retract and becomes a pin bar and if I wait for second candle the price have move to far from my resistant or support and my stop loss going to be to big. This has always been my problem. Waiting for your good advice. Thanks. Nazda.
Hi Nazda,
There’s really no right or wrong way to this.
False breakouts are part and parcel of trading and you have to accept it.
If you find it easier to trade by waiting for a “confirmation” then go for it.
Rayner
Enter instead at the Bottom support level of the Breakout pattern, Then it won’t matter if it retracts!
That was a brilliant video and very well explained and helpful, Thanks Rayner.
Hi Timm,
I’m really glad to hear that.
Don’t hesitate to let me know if there’s anything, I’ll be glad to help.
Rayner
Thank you Rayner. You amazed me one more time. Heard about this before, but some how i get deeper understanding. Salute to you sir. And you sounds like a wyckoff-ian 🙂
You’re welcome, Hans.
Glad to hear it’s helping. And I do follow the works of Wyckoff.
Rayner
Hi Rayner,
the build up part was enlightening, I’ve often fallen into the trap of going the wrong way when price in consolidating near a level of interest. Thanks and keep sharing:)
Hi Christianna,
I’m glad it made sense to you.
Hope it could save you some losses in future. Cheers
Rayner
Thank you Rayner,
When trading, people often tends to chase after a break out and very often the price is already a distance from the structure and built-up. Especially when the price keeps on moving up, nobody wants to be left out. Once you are in, often gets trap and the price starts moving down.
This video is excellent reminder to me.
Hi Mun Chiew,
That’s right. Chasing the markets is is a deadly sin in trading.
Rayner
Nice video with clear example. I like to know how to trade breakout failure. When to take entry, what should be S/L and what should be RR if ine trade BO failure .
Thanks again for good lesson.
Hey Diapk,
This post will help https://www.tradingwithrayner.com/price-action-trading/
Read towards the end of it.
Good explanation. What trading tool u use?
Hi Val,
Which tool are you referring to? The pen drawing?
Great stuff Rayner. Clear and complete.
Thank you Eric.
Don’t hesitate to let me know if you’ve got any questions, I’ll be glad to help.
A very good learning experience .
Awesome to hear that, Manoj!
Don’t hesitate to let me know if you’ve got any questions, I’ll be glad to help.
Excellent video. Thank you, Rayner for sharing.
You’re welcome, Jessie.
Don’t hesitate to let me know if there’s anything, I’ll be glad to help.
Always learning something new:)
“BUILD UP”!!
Thanks, Rayner.!
Don’t mention it, Earl. Glad to hear that!
Hi Rayner , Great video , simply explain.Thanks for sharing .
Mohammed
Don’t mention it, Mohammed.
Cheers
nice vídeo………..keep on!…..thanks
Thank you, Paulo!
Hi Rayner,
Great learning. One suggestion , if you can show some more examples of such breakouts, it will be of more helpful to grasp and apply the concept. Kudos to you for your self-less sharing..
If i am to send some dollars to you as a token of Love, please share the details for the same. (I am from India)
Hi Krish,
Thank you for your feedback. I’ll look into it.
There’s no need for any donation. By spreading the word around will mean the world to me.
Cheers
Sure
Hey Rayner…..very nice pointers regarding breakout trading and also which ones to avoid.
Your videos are so easy to understand and have really valuable content.
God bless you!
Awesome to hear that Rahul. Cheers!
Thanks Rayner….makes so much more sense….however a doubt, when you do these charts to see all these areas, what do you use as timeframe, daily or 4H? Which one do you recommend? Thanks again
Hey Dayana,
I focus on the Daily.
Hi Rayner,
Thanks for the great lesson.
However I doubts is on the part “trade breakouts with build up”
You stated that when price action moved to a resistance zone n consolidate, it were most possible due to two reasons, 1. There isn’t any seller n 2. There are buyers willing to buy this price level, so there is better possibility that the price will go upwards after the consolidation. But why can’t be the possibility to be on vice versa. I.e, 1. There isn’t any buyer to push the price up, n 2. There are more seller coming in to put the price down, after all the price was at the resistance zone.
Thank you.
Hi Robert
That’s possible as well. But based on my experience the more times SR is tested, the more likely it is to breakout as stops are accumulated beyond the levels.
Do you mean most trader will execute short trade with stop loss above the resistance level, money market will breakout n eat those stoploss ?
Hi Robert,
It’s likely traders will have their stops above resistance as that’s what they are taught to do. And if there’s enough incentive by the “big players”, they could run the market higher and trigger those stops.
Sorry I mean money maker instead of money market
Hi Ray.
Thanks for this video. It is actually helpful to me. God bless you.
Glad to hear that, Sylvester.
Don’t hesitate to let me know if there’s anything, I’ll be glad to help.
Thanks very much for this presentation, I am particularly grateful that you took the time to define area of buildup.
It was an excellent useful presentation. I cannot believe I am getting all this info FREE.
May you be abundantly rewarded.
Hi Wari
You’re most welcome, glad to know it’s being appreciated.
Best!
Excellent video rayner! Well explained and very detail. Please make more!
Cheers Ahmadil
Good stuff 🙂
Glad to hear that
Thank so much Rayner for sharing this information
You’re welcome bud 🙂
I am on my way to becoming a profitable trader thanks to you and your videos Rayner.
Many thanks Rayner, I am looking forward to your webinar next week too 🙂
Awesome to hear that, Eugene.
Looking forward to it too!
learned a lot thank you
cheers
Terrific video and you explain it very well. I understand so much more now. Thank you
You’re welcome, Sharon 🙂
Hi Rayner,
Thank you for you advice. I can see where I have been going wrong, and nowhere I can improve.
Thank you
Glad to hear that, Michael.
cheers
wow thanks rayner i have learnt a lot from this video
cheers Selby
This is a good one Rayner!!
Thank you, Clyde!
Hi Rayner,
The video link is missing
It’s working fine on my side.
Can you try again?
Thanks for this video Rayner. It made it clear for me what are the more favourable set ups and avoid being caught up in false ones. Very often I just look at the “close range” angle of the chart (3 months) so I get excited immediately to jump in without much consideration to look at the general trend. SOmetimes…I win in this but often I get caught in false break outs. This is very helpful and so are the other stuff you wrote. I hope there are lot more coming 🙂
More power to you Man!
Awesome to hear that, Harold.
cheers
You’ve probably heard this a 100 times before.. but still… nice video and examples, along with a great explanation.
Keep them coming please, I like your style of explanation.
Thanks mate 🙂
You’re welcome!
Hi Rayner.. learnt about build-ups by watching your video.
Thanks for sharing.
Cheers !
You’re welcome bud!
Wow, thanks Rayner! Awesome video, man 🙂
This answered a LOT of questions going through my head regarding breakouts. I’ve read and been taught to look for breakouts before but this video amplified previous learnings. I can now look at charts from a different vantage point. Hopefully i will start seeing what I need to see more clearly and act faster.
Cheers and more power to you!
You’re welcome, Dindo. Glad to hear that!
Thank you Rayner! Great Video.!!
A few question. Are you looking at volume after a break out? it must have a high volume right?
I don’t look at volume.
Thanks rayner. Such a big help. More power to you!
Welcome!
Thank you Rayner.
I trade breakouts too.
Awesome
Will my chances of trading breakouts be more successful during bull markets than in bear markets or major corrections?
Thank you so much Rayner for your tireless and selfless acts of mentoring. May God shower you with many blessings so you could continue to help more traders like me.
Definitely. Breakouts in a bull market are much more forgiving.