BitcoinFormazione
Trendline Break - Is It Really Reliable? How Should You Trade It
Hi Traders, here comes another workshop. Today's topic is just something that randomly popped up in my head, just thought of sharing some of my thought process on Trendline Break.
Most beginner traders seem to put way too much attention into trendline break, but from my personal experience, the ONLY information that you could extract from a Trendline Break scenario, is a potential shift in trend direction.
Right after price breaks above OR below a trendline, I want all of you to ask yourself several questions
1. Does the momentum looks strong enough to flip the market direction around?
2. Compare the length/ size of the 'break' to the initial trend - That would usually gives you clue of whether is it a real break or a false break
3. What is the follow through after the break? Is the direction really completely flipped, or goes into some halt?
4. Where is the nearest obstacles (structure) if you were to take the reversal trade?
These are some of the questions that will hold you back if you're always thinking of immediately jumping into those Trendline Break setup, and hope this gives you a completely new perspective on this simple pattern.
If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
Let me know your thoughts on Bitcoin in the comments below.
Take care and trade safe.
All the content I've posted are for educational purposes, please perform your own research and only take it as a reference.
Most beginner traders seem to put way too much attention into trendline break, but from my personal experience, the ONLY information that you could extract from a Trendline Break scenario, is a potential shift in trend direction.
Right after price breaks above OR below a trendline, I want all of you to ask yourself several questions
1. Does the momentum looks strong enough to flip the market direction around?
2. Compare the length/ size of the 'break' to the initial trend - That would usually gives you clue of whether is it a real break or a false break
3. What is the follow through after the break? Is the direction really completely flipped, or goes into some halt?
4. Where is the nearest obstacles (structure) if you were to take the reversal trade?
These are some of the questions that will hold you back if you're always thinking of immediately jumping into those Trendline Break setup, and hope this gives you a completely new perspective on this simple pattern.
If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
Let me know your thoughts on Bitcoin in the comments below.
Take care and trade safe.
All the content I've posted are for educational purposes, please perform your own research and only take it as a reference.
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