T2W Bot

Staff member
1,465 62
Most traders are reluctant to buy breakouts, for fear of being the last one to the party before prices reverse with a vengeance. So, how can they learn to trade breakouts confidently and successfully? The “do the right thing” setup is designed to deal with just such a predicament. It tells the trader to buy or sell when most ingrained lessons are against doing so. Furthermore, it puts the trader on the right side of the trend, at the times when many other traders are trying to fade the price action. Read on as we cover this strategy and show you some examples of how it can be used.
Do the Right Thing In the “do the right thing” strategy, the capitulation of top and bottom pickers in the face of a massive buildup of momentum, forces a covering of positions, allowing you to exit profitably within a very short period of time after putting on a trade.
“Do the right thing” employs a rarely used indicator in FX called the commodity channel index (CCI), which was...
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t2g2

Newbie
1 0
thank you, Kathy...always spot on.
the CCI making 2 dips on the +/- 100 line is like the 2nd test aspect, also.
look forward to your next post.
you introduced me 2 forex back in 2002. thanks.
 

Sidekicker

Well-known member
407 11
It's funny how in the examples, you always exit the 2nd half at the exact top of the breakout.
 

Tempted

Active member
103 1
Re: Trading Breakouts- Doing the Right things.

This is a new thing to me... I hope it works as i have other instruments in place such as MACD, RSI, MOMENTUM. I also put the donchian channel in place as a guide with the 7, 10, 21, 55 SMA. I am a day trader but have not made money nor lost money, but been playiny around with these instrutment. You example is great which helps the GREED factor(i.e know when to get out principle). Keep your post coming and look forward to a profitable trading in future.

Tempted
 

ECCfx

Newbie
1 0
I also use breakout strategies with candlestick patterns.Yet another nice article from Kathy Lien.
 
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