Here’s the thing…
Not all breakouts are created equal. Some have a high probability of failure and some… high degree of success. You’re probably wondering…
“How do I find high probability breakout trades?”
Well, the secret is this…
You want to trade a breakout when losing traders are cutting their losses (as this pushes momentum in your favor).
This means if you want to trade a breakout, you need to hit the stop losses of traders shorting the market. Why?
Because these stop losses are actually buy stop orders. So, if you’re short, you need to go long to close your current position, right?
Now imagine this:
If there many traders who are short the market, these “buy stops” would accumulate over time — and it doesn’t take an Einstein to figure what happens if they get triggered.
Now, you’re probably thinking:
“What exactly does it look like on the charts?”
Then watch this week’s video here because I’ll reveal them to you…you’ll learn:
PLUS, you’ll learn:
- How to find monster breakout trades before it happens
- The worst breakout trades to avoid at all cost
- The biggest mistake traders make when trading breakouts
PLUS, my favorite trading setup of the week.
So, click below to watch this week’s video:
I hope you’ve enjoyed this week’s market analysis.
If you’ve got any questions, don’t hesitate to let me know in the comments section below. Cheers!
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 for the tips, Rayner! These are great. I’m always looking to improve the % of winning breakouts that I buy – as you said, most of them are fakeouts so any tips to help find more reliable entry signals are appreciated. Thanks again!
You’re welcome, Jay. Glad to hear that!
Don’t hesitate to let me know if you’ve got any questions, I’ll be glad to help.
Rayner, Something to learn from you every time you set up a new video. Really thanks for your time and effort. Appreciate people like you who are ready to share without a second thought. A rare breed of humans. Cheers.
Glad you found something useful each time.
Don’t hesitate to let me know if there’s anything, I’ll be glad to help.
Hello Mr Rayner, Thank for your video.
When i put 200 EMA on daily USDCAD i dont think we have the definition of a down trend like you teach us. (200 EMA down + price below it).
Have a good day
Yes, as per definition it’s not in a trend. It’s more of a range market right now.
My wife is not interested in trading, does not watch
No worries with it. As long as you’re interested 🙂
This is an excellent video on spotting breakouts that have a higher probability. Great job and thank you for all the info. I do have a question though.
What is the timeframe you use mainly? I notice you switch to hourly and weekly, but how do you know when to switch and look into other time frames to assist with your analysis and why?
I would love for you to do a lesson on multi-time frame analysis to also assist us if possibly. Maybe show us how you use them or how they can be used.
That’s a good question and I probably should explain it in another video.
As always the great info that you have reveal are very beneficial to whom really need it…..and I don’t want miss every time you give a video in the you tube. Great keep it up.
Thank you for checking in. Glad to know it helps!
Thanks a lot Rayner, very clear and informativ. 🙂 Thumbs UP
Awesome to hear that, Hennning!