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eskimo
10-11-2012, 01:43 PM
There are 2 strategies to trade forex that are, by and large, almost contrary. You can trade on pullback or you can trade on breakout. Which is more preferable? What are the advantages and/or disadvantages of each? Do you trade using any of the 2?

ansops
01-08-2013, 09:43 AM
While it is ideal to use fibonnacci to trade pullback,we must also note that there are many times that the market will not pull back up to our expectation before continuing in its original position,thus making us to lose the opportunity to make profits from such move.Equally you may place a pending order for entry after the market has pulled back.However you may be afraid that the market will not pull back to the extent of your limit order,hence you will now rush in with with an instant order.But to your disappointment,the market may still pullback to the level you had earlier expected it before moving in its original direction(trend); in that case you will be losing part of the profit you ought to make or even your stop loss could be hit

bisaddkunlevics
06-08-2013, 08:53 AM
There are 2 strategies to trade forex that are, by and large, almost contrary. You can trade on pullback or you can trade on breakout. Which is more preferable? What are the advantages and/or disadvantages of each? Do you trade using any of the 2?

Really, it is true to know that there is pullback trading systems, and their is breakout trading systems, but these two systems are not the only one in the market, we have more systems, and trending systems are still the best.

I have done both the pullback and the breakout, they are just opposite to each-other, they can be used in trending or in reversal, they might even cause total reversal.

In trading the breakout, if their is failed breakout, that is where the pullback occurs, and this might be so devastating against the initial direction, but this happens not all times.

Abdul Ghaffar
06-09-2013, 03:21 PM
You can position a awaiting purchase for access after the industry has retracted.However you may be scared that the industry will not withdraw to the stage of your restrict purchase,hence you will now hurry in with with an immediate purchase.But to your frustration,the industry may still pullback to the stage you had previously predicted it before shifting in its unique route in that situation you will be dropping aspect of the benefit you ought to create or even your stop-loss could be hit

budado
06-09-2013, 09:00 PM
There are 2 strategies to trade forex that are, by and large, almost contrary. You can trade on pullback or you can trade on breakout. Which is more preferable? What are the advantages and/or disadvantages of each? Do you trade using any of the 2?
Its totally the same. Its like asking which is better opening sell position or opening buy position. The opportunity in both direction is the same. Its does not matter if its a pullback or breakout. What matter is that you do analysis and you make a right analysis and you trade and end up in profit. How much will be your TP will always depends on the result of your analysis. As the stronger the volume and the faster the acceleration of the price movement the better chance that you going to earn more.

That's why in term of making profit its not about which is better but its about your trading skills. Now that you know that the trend will be a breakout what will you do next? or if the trend will be pull back what will you do next? So its your action and reaction that will make a difference between earning good amount of money or incur loses.

Joeltonsfx
06-10-2013, 10:59 AM
There is certainly a remarkable difference between a pull back and a break out! A pull back is always against the prevailing trend and mostly not long lasting as it represent a kind of market correction - traders taking profit or cooling off before putting more pressure again. On the other hand, break outs happen after market have been ranging for sometime.

Often times, a breakout ends up as fake and that is often one headache most traders who trades this way are having to contend with. I think trading pull back can be more risky for the mere fact that it is taking a position against the trend but use of price action, trendlines, candlestick patterns and Fibonacci retracement can enhance a trader's understanding of when a real breakout or pull back is by the corner.

uchennafx
06-10-2013, 12:08 PM
I love both break out and pullback in forex trading , i use the two strategies to back up my price action trading , in the pull back own, if i spot a dominate trend that has been trending for a long time , i wait for a pull back to rejoin or join the trend , because in the forex market , a trend always pull back before heading to its original direction .

And i wait for a clear break ou in the market , especially around confluence areas , i wait for it to break to close above or below the areas , i wait because it might be a false break and when one enter without waiting for it to close well , he will lose money , and that is what patience does for a trader wait and confirm everything before pulling the trigger , both are good strategy if you know how to use it .

There are 2 strategies to trade forex that are, by and large, almost contrary. You can trade on pullback or you can trade on breakout. Which is more preferable? What are the advantages and/or disadvantages of each? Do you trade using any of the 2?

kashi
06-24-2013, 04:44 AM
well according to me i would like to say i trade with these 2 things and these two things really helps us .. first of all the pullback and breakout is not enough for doing the trade. i get some help from candle stick the candlestick is only real time signal provider indicator which helps us to determine next movement of the market. so when the market touch the support or resistance then there make some bin par doji or any thing else which mean it is pull back.

it is not do all the time. if we do some patience and wait for the next candle then we can predict easily. and about the breakout this strategy is also good. but remember that some time support become resistance and resistance become support .

delighted32
06-25-2013, 06:04 AM
Sometimes this kind of market situation gives us opportunities to make some pips. This time market stays at the major support or resistance levels and we can guess the tendencies of the market flow and which side is going to blown in the near future at the news releases. But we shouldn't forget about the money management which is standard as 2 to 2.5% per trade. Last time I made 60+ pips with EUR/USD pair from 1.3400 level. My stop was above 1.3425 and I used Trailing Stop when it was breaking the downside.

Joeltonsfx
06-26-2013, 09:33 AM
I love both break out and pullback in forex trading , i use the two strategies to back up my price action trading , in the pull back own, if i spot a dominate trend that has been trending for a long time , i wait for a pull back to rejoin or join the trend , because in the forex market , a trend always pull back before heading to its original direction .

And i wait for a clear break ou in the market , especially around confluence areas , i wait for it to break to close above or below the areas , i wait because it might be a false break and when one enter without waiting for it to close well , he will lose money , and that is what patience does for a trader wait and confirm everything before pulling the trigger , both are good strategy if you know how to use it .
I agree with your line of thought, but differs with you in the area where you said you use the two strategies to back up your price action trading strategy! I think it is actually the other way round, because price action is more or less the finger print or order flow of the market and every strategy and indicators looks to it for clues of what to do next.

You raised an issue on timing in your comment and that brings to mind that a trader have to be the patience and disciplined type to be able to effectively put these strategies to use, because these market setups does take some time to materialize and most traders run against the tides when they jump the gun!