TradingwithRayner

A trading community dedicated to helping traders succeed. You won't get any hype or fluff. But only the good stuff.

By 144 Comments

How to Trade Breakouts Like a Pro

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?

In the Ultimate Guide to Trend Following, I will teach you this powerful trading strategy step by step, along with charts and examples.

You can download it here for FREE.

  • 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

    Reply

  • 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.

    Reply

    • 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

      Reply

    • Enter instead at the Bottom support level of the Breakout pattern, Then it won’t matter if it retracts!

      Reply

  • 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 🙂

    Reply

  • 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.

    Reply

  • 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.

    Reply

  • 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)

    Reply

  • 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!

    Reply

  • 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

    Reply

  • 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.

    Reply

    • 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.

      Reply

      • Do you mean most trader will execute short trade with stop loss above the resistance level, money market will breakout n eat those stoploss ?

        Reply

        • 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.

          Reply

  • 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.

    Reply

  • 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 🙂

    Reply

  • Hi Rayner,
    Thank you for you advice. I can see where I have been going wrong, and nowhere I can improve.

    Thank you

    Reply

  • 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!

    Reply

  • 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 🙂

    Reply

  • 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!

    Reply

  • 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.

    Reply

  • The information you provide and the way you teach is beyond helpful i want to say thank you for helping me through my trading journey.

    Reply

  • Thank you so much for this eye opening theory, I look forward to seeing if I can implement what you have taught me. Keep up the good work, you’re special.

    Reply

  • Thanks for this great video Rayner. I’ve been following your blogs through twitter for 2 weeks now and it had been a blast learning a lot. I do have a question though. Is volume necessary part of a breakout (i.e. volume should be higher than the average)?

    Thanks in advance!

    Reply

  • Rayner your’re doing a great job teaching people how to trade the right way. Congrats for that. You’re the best there is in this generation.

    Reply

  • Thanks for this information on how to trade forex. But i can find the link to watch or download how to trade breakout like pro

    Reply

  • I must know when to trade and know when not to them. Must ensure that that I trade break-outs near the build-up not far from it for stop loss purposes. Damn sir you are so good and very clear on your teachings , thank you

    Reply

  • Hi Rayner,I read your main two guides Price Action & Trend following.Those are real eye openers & very helpful.I’m eagerly looking for more material to read form you as e books but couldn’t find.Are those two are the only materials available as e books?

    Reply

  • Hi Rayner

    To answer your question, the following is what you look for when trading breakouts 1) Trade with trend. 2) Trade near structure. 3)Trade breakouts with buildup.

    Reply

  • Howdy Teo,

    Thank you! thank you Teo! I am joseph rama from Cebu Philippines, I’ve stumbled in your YouTube channel and I am quite impressed in the emphasis and explanation you’ve given to every topic in regards to forex trading!
    I wish you all the best, great health and Unwavering energy of helping us to achieve our forex goal!

    Brgds,

    Reply

  • Rayner you are young energetic passionate and have grip on industry knowledge and together we will win to the top INSHALLAH.

    Reply

  • Great Video Rayner. Your trading ideas have been very beneficial for my existing trading setups. Lots of useful and precise information. More importantly, you are sharing all this to the world. Great work buddy!!

    Reply
    • Almost!
    Trend Following
    Next Time!
    Price Action Trading
    So Close!
    Candlestick Patterns
    No Luck!
    Pro Traders Edge
    SPIN TO WIN!
    Enter your email for a chance to win. (If you win, the prize will be sent to your email.)
    >
    [i]
    [i]