Wait for pull back or not?

Quite often breakouts out of a consolidation phase are so violent that if you are not in the tradeakreadt, by the time you get a pull back there is nothing left of the trend or it has reversed. Should one wait for the pull back or not. Any idaes??

Most B/O's of anything are false...2nd B/O's after a pullback tend to be the truest over any extended sample.

I trade B/O's but under certain conditions ( ( I have listed them on thsi forum in other posts) but if these conditions are not met then depending on what price is breaking out of and the overall price action conditions on the t/f's of interest, then I will await a pullback and see if I get a repeating set-up at the pullback hi/lo that may allow me to get 'with overall prevailinng price action/direction.)

You have to an edge in any trading and I doubt that just trading b/o's or pullbacks pre say represents one.

G/L

OMF said:

Quite often breakouts out of a consolidation phase are so violent that if you are not in the tradeakreadt, by the time you get a pull back there is nothing left of the trend or it has reversed. Should one wait for the pull back or not. Any idaes??

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I wait for the pull back. Sometimes it can appear to break the trend but only to your surprise go back the other way. Additionally by waiting for the pullback you are making your trade stronger. It is usually good to wait for a second pullback if you are patient enough. A picture perfect example is below. It generated 40 Pips today. Not a lot but still a great trade!

pipsurfer56 said:

I wait for the pull back. Sometimes it can appear to break the trend but only to your surprise go back the other way. Additionally by waiting for the pullback you are making your trade stronger. It is usually good to wait for a second pullback if you are patient enough. A picture perfect example is below. It generated 40 Pips today. Not a lot but still a great trade!

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Pullbacks are not fool-proof, though. It must complete before entry or you could find yourself in a reversal.

Splitlink said:

Pullbacks are not fool-proof, though. It must complete before entry or you could find yourself in a reversal.

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Correct that is why on the chart you wait until that candle closes after the huge pullback. If would have closed over that trendline it would have signaled a buy in my book.

How about getting in early and increasing your stop a little for the pullback 1st and 2nd and when price heads in the right direction put your stop loss to the original place minimizing risk and getting a better risk to reward ratio.

just me 2 cents.

I think pull back strategy is not working for me as I have followed the PIP in the last two months and I have earned nothing. But I have seen people are earning a lot of profit through pull back strategy.

Cranfordd said:

I think pull back strategy is not working for me as I have followed the PIP in the last two months and I have earned nothing. But I have seen people are earning a lot of profit through pull back strategy.

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Making money on Pullbacks are tough because in my opinion. There is a lot of risk involved with not much to gain. Playing the trade after the pullback makes for bigger gains and less risk. It allows you to see what the market is doing.