The
trend line breakout strategy right so basically i've taught you guys that my
test has trendline strategy but this is a little bit different from that and
i'm going to show you guys technically using about two or three illustrations
to explain to you when i would be trading the market on a trend line breakout
setup so remember that in my third thought strategy i explained to you guys
that usually would have the market form a continuous part in either in a higher
higher formation which creates what first point second point and players will
be looking at for trade setup in the third point or lower low formations where
we'll have first points at the top second point and we'll be looking out for
three setup in the third point formation right where you know you kind of have
the market go up retraces right perhaps into the fifty percent is one point
eight seven eight and then pushes up where we have two perfect line of two
perfect points where we can draw out a line and then expect perhaps a third
touch into the into the trend line right where we've already drawn which cells
that's a support or perhaps maybe seven as a resistance and then we'll be
looking out for strategic way to jump in on the market rather than looking at a
breakout but this time we're looking at specific scenarios where we'll be
looking at not necessarily looking out for a trade in a continuation of the
trend but a tracer tap in the opposite direction of the trend which i call the
trend line breaker strategy and there are some caveats that every trader need
to particularly follow when they want to make this kind of setup or when you
want to take this kind of setup and then you must make sure that the preamble
is set clean and clear in the way i'm going to show you if the setups and then
the rule does not follow according to what i'm going to be showing you guys
today then you don't really want to call it a trainer breaker strategy
but
like i said if you follow all the things i'm going to show you clearly trust me
when that setup comes around and you're supposed to take those setups you can
be certain that you have about ninety nine point nine percent win insurance on
that setup so yeah without i'm gonna go right into the chat and break down or
perhaps you know uh remind you guys of the previous trading setup which is a
tethered trend like strategy then we can re-emphasize by building on the
knowledge of the trend line breaker strategy i believe that will make the two
difference extremely clearer for you everything candles information patterns if
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smash the like button yeah so yeah guys back onto the screens i'm going to show
you my explanation of my previous trendline theta strategy before we head on to
breaking down the essence of the trendline breaker strategy so usually i tell
you guys that when the market is moving we could have the market moving in
series of higher high and higher lows right so if it's making a higher high
then we look at an uptrend but if he's moving a lower high then you're looking
at downtrend so higher higher lows the market will usually like start from the
bottom go up trade downwards like that continue up go down continue up and then
we can say this market is basically in an uptrend right so it's crazy what
higher high high where do we see the higher high already we can establish it as
a low point in the market where they can establish the new high created here
the record is another low point but this low is higher than this one that's
what we call it a higher low and then we have another higher high pretty much
sure that most of you are familiar with this but yeah just as a refreshing of
our knowledge right so we can also have the opposite scenario where the market
is creating lower highs and lower lows right we're just making series of lows
right so here we have what a low point a high point here then we have another
low point here then we also have another high point here but this time lower
than this one that's why we'll call it a lower high right then we have another
lower low so once we have a lower lower
low
scenario we can already establish that the market is in isn't a downtrend and
once we have a higher halo we can establish that the market is in an uptrend
formation then i explained to you that when it comes to trendline and net
understanding then you must understand that you cannot just wake up and then
draw trends starting from any point at all you want in the market that's pretty
much a rookie behavior right let me explain what i clearly mean you usually
find certain traders play out um let's say the market moves randomly like this
it goes up come down like this goes up and then they want to start out drawing
a trend line they want a perfect scenario that suits their mind so you're going
to find they're usually confused about where to even start drawing the trend so
sometimes you can have the market drawn like this some we even have the trend
line starting from maybe this point and then you know just basically all around
the place just for it to be able to just suit the understanding of what trend
line is but i explained to you guys that we want to apply some mathematical
accuracy here in terms of their reasoning for drawing a trend line and i told
you guys that if you want to think about trend you want to think about it as an
inception of anything right so just like fashions it is the new trend it
started from somewhere twitter this is a new trend everything you know in life
well we say trend it means that we have a point in which they started so i said
when you're looking at the trend line then you want to look at it as that point
where the market started its inception if it is an uptrend the inception of
that trend or it has a downtrend in that inception of that trend so we have
like the market start from here it goes up like that retraces a little bit this
does his own thing and then goes up again does his own thing blah blah blah
right we want to establish the fact that this is the inception of that trend
before this whole overall movement went up like this right so that way that we
can see that well we have a point one there then we can also go ahead to see
even though we made this series of first high the market kind of pulled out a
little bit it could be a 50 retracement 61.8 or 78.6 these are my favorite
fibonacci numbers if you don't know anything about fibonacci then you really
want to go down into my article and have a clear understanding and they can be
able to clearly follow on what we are saying but yeah when we have that kind of
a push down and the market pushes up it establishes itself again as a point too
in the market that is the only point that i feel like not in fact feel like
that is the only point which is required for a trader to establish a trend line
right or to point out a train line in the market and since we have point one
here you connect it onto the wick so in terms of trend line as well sometimes
traders get confused on how to place your trainer specifically on the market
you get some of them let it run through the candles you get some of them just
haphazardly you know we're saying point you know trends or line so lines is a
condition of two points right if you if you know anything about mathematics and
how we draw lines we connect two points to make a line so our point in the
market here now is the tip of the wick so you want to use the tip of the wig to
establish that point right so you want to start from a point like here and then
connect it to the point two and then extend it into the future because that is
when you're looking for a trade setup once you extend this into the future
you're waiting some way somehow for the market to visit the third point here
and then once the market versus the third point here you know what to do
already but i would be expecting some
sort of a reaction around this range and then be able to catch the market onto
the upside rather than expecting a breakout onto the downside but we also know
scenarios that allows us to not expect a bite receptor but perhaps a
continuation into the next area of support on a downside or point of least
resistance but when we come to the trend line strategy that i want to show you
you must understand that the market trades in various fashions right we
sometimes have trends that push up or market trends that spaces themselves out
right right where in the sense that we'll have like an uptrend push down goes
up like that push down and then
aspect of showing you that example but before i do that let
me show you the caveats that i meant in terms of you know understanding how to
take advantage of that setup so i said you want to understand that okay this is
an unhealthy train us consuming i've taught us right so when the market pushes
down a little bit goes up creates that steep movement goes up a little bit and
creates that sleep movement and goes up eventually you have like a healthy very
bullish movement right very steep like that sets itself out in the market right
now you can be able to still trace your point one point two and then you have
like a point three which you're not willing to even trade right the caveat here
is that for you to be able to take advantage of the third of the trend line
breaker strategy then you want to really wait for the market to trade close to
that steep trend line that is the first give yet you want to wait for the
market to trade close and it actually does happen in terms of waiting and then
for it to actually trade closer to the trend line right so most time you have
people being insured and using so many reasons we've been trade or shut the
market earlier than that but you want to be patient and take the kill from what
i'm teaching you that you're going to have the market you know trade along calm
down a little bit like that until finally it comes close to the trailer now the
second caveat is that you want to look out for that breakout candle it could be
a little bearish candle in this case we're looking at a bullish tip movement
which is an unhealthy trend so we want to look out for a bearish candle going
in the opposite direction so you usually have like you know a sharp push on the
downside right let me change the color to black so a sharp bearish candle push
on the downside something like this
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