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What is a breakout
First off, let's talk about basics, what is a breakout?
A breakout is, for me, classified in two ways:
Trading pullbacks.
What are the pros and cons of trading.
Where is the likely place on the chart where the market will pull back into.
Three different entry techniques that you can use to enter on a pullback.
Where will the pullback end
three scenarios where I find that the pullback would usually end in either one of these
three particular scenarios:
The Overshoot
No line chart
Number of re-tests
2: Healthy trend
A healthy trend usually has a clear pullback towards the 50-period moving average.
This means that you can actually time your entry towards the 50-period moving
average
3: Weak trend
a weak trend usually occurs when the price doesn't respect the 50-period moving
average anymore.