Breakouts are single sided movement exhibited by stocks, index etc; A breakout can be from a Trading range, a Pattern, or from Price Action. Many a times as a trader we know the breakout is happening and yet most people stay on the sides thinking prices has gone too far and the Stop loss is now bigger. A trader should be mentally prepared to take trades without second thoughts or hesitation. As this is the moment you have been waiting for. 

Why do people hesitate ? It could be due to lack of self confidence on the setup they have been doing, If a trader is confident on the setup he wont be thinking twice. 

When a Breakout happens from a Trading range we take the width of the Trading range and project upwards for the target zone. You can see the below image where the Range is marked. The upside target was 200 points in this case.but when the Break happened at the open and it was too quick and the sl was bigger. Most breakouts has bigger SL. Thats why i prefer mean reversion trading.

How do we Enter in this Setup with Price action ?

In this case the 2nd bar was the breakout bar and the 3rd bar was the follow thru bar. If you have to take a confirmed Breakout trade you have to keep day low as the SL at the time of Entry. Since the Stop loss has to go to the low of the day  it will give poor Risk Reward Scenario. So Such wider sl is not comfortable for some traders and Breakout from a Trading range can fail. we can look to enter using price action. The view is strong up and the breakout is confirmed. Now We wait for a Reversal bar to occur ( 6th bar in this case). After such a Confirmed Breakout , a single reversal candle has no significance, It acts as a trap as most newbie will think if i short here and prices crash i get a good trade with small stop loss. But they should also understand that , those methods are low probability. The trade here is to buy the High of the reversal bar with minor swing low as sl and wait for target zone.

I Discuss in detail in my Advanced Price action Strategy Course one to one with Live Market Mentoring upto 6 months. Incase you are interested, do feel free to call / watsapp @ 7373339777 / 8508777733 to Discuss how it can be useful to you. 

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