Playing Emini SP Breakout Game

[cowcool 10]

Need advice from veterans and professional traders. I have been trying playing break out game with so so result. Let's say that key resistance for emini SP is 900 , at what point should I place my buy stop for playing break out game, 901, 902?.

 

In the same way, suppose, key support for emini SP is 870 , at what point I should place my buy limit for playing bounce up game.

 

Thx!!!

[Harlequin 10]

I stay away from breakouts on the ES. Buying pull backs and selling rallies is working much better for me.

[bakrob99 11]

Need advice from veterans and professional traders. I have been trying playing break out game with so so result. Let's say that key resistance for emini SP is 900 , at what point should I place my buy stop for playing break out game, 901, 902?.

 

In the same way, suppose, key support for emini SP is 870 , at what point I should place my buy limit for playing bounce up game.

 

Thx!!!

 

Sell the 900 and Buy the 870. ES is a fading market.

[brownsfan019 17]

To play a breakout you need some other confirmation, esp on the ES. If you have resistance at 900, when price travels there, you need something else to tell you it's time to jump on the train to 910 or whatever your upside is. Just buying above your resistance hoping for the move is too risky IMO.

 

I like breakouts when they show up. For my trading they don't show up that much as I am typically looking to buy the LOD and sell the HOD.

[sep34 10]

To play a breakout you need some other confirmation, esp on the ES. If you have resistance at 900, when price travels there, you need something else to tell you it's time to jump on the train to 910 or whatever your upside is. Just buying above your resistance hoping for the move is too risky IMO.

 

 

I agree..........................................

[Tams 20]

ask a hundred people...

and you will get a hundred "resistance".

 

 

how to trade break out?

depends on how you define resistance.

 

if you draw enough lines on the chart,

sooner or later, the price is going to hit it.

 

sorry I seem so unhelpful...

but I really think you are digging into a rabbit hole that gets nowhere.

 

to borrow a line from a seasoned trader:

"The question is not whether if the trade will go in your direction,

the question is... what if it doesn't."

 

you really need to look one step beyond your question:

 

1. what if the price hits your resistance... then retreats.

-- at what point are you going to say: "fk it, that's a false breakout!"

 

2. what if the price breaks out, then retreats back to your entry point.

-- are you going to hold? or are you going to bail?

-- what are the basis of your decision?

 

3. what if the price comes near your resistance...

-- what will make you say: "this is going the other direction, I am changing my analysis!"

 

 

 

if you can answer these questions... you can trade any resistance/support.

[BlowFish 10]

Resistance is seldom at a 'line' it is usually an area x to y. Of course x and y are somewhat 'fuzzy'. This is before you even start to determine what constitutes a break out. if you are generous on your zone then you can probably be tight on your break out.