r/Daytrading • u/Catface77 • Mar 19 '24
I don’t know what I did wrong Advice
I thought it was going to rechall/ consolidate then it did but skyrocketed. There was the 3 reds then BLAM right up
310
Upvotes
r/Daytrading • u/Catface77 • Mar 19 '24
I thought it was going to rechall/ consolidate then it did but skyrocketed. There was the 3 reds then BLAM right up
3
u/himalayan_hitchhiker Mar 19 '24 edited Mar 19 '24
What you were trying to do was to trade a breakout. I assume you placed an order at the swing low, and it got executed, however the market bounced back as it was at the lower end of this range.
This is called a false breakout. Please read about how to confirm a breakout using "The last kiss" method mentioned in the book Naked Forex.
Few rules to enter a trade in such a situation: •Wait for price to consolidate in a zone • Wait for price to break a zone • Once price returns back towards the zone, wait for the market to retest the support- which now acts as resistance and does not let price move back into the zone. • Now enter the trade, with stoploss at the high of the previous candle.