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.