Thoughts on Confirming Breakouts in Current XAUUSD Conditions?

[yassir_lamrichi]

Hi everyone,

Yassir L. here. Been closely observing XAUUSD price action, especially on timeframes like the M15. With gold's recent volatility, I'm curious about the community's current approaches to confirming the validity of breakouts before committing to an entry.

What are your preferred indicators or confluences for filtering out potential fakeouts, particularly when trading breakout strategies? Are there any specific market structure nuances you're paying more attention to in these conditions?

Always keen to learn from the varied experiences here.

Best,
Yassir L.

 

[tomorton]

I don't trade M15 and am not in Gold right now but it's a worthwhile TA question for all markets on all time-frames. Or should I say puzzle? Becasue I don't think that there's an ideal solution.

Many traders use various parameters which they want to see before taking a break-out trade, such as indicator levels, volume etc.. But consideration of these is only triggered when price moves to a certain level first. So why not just use price on its own? The logic being that the further price moves at the start of a break-out, the less likely it is to be just background volatility........