Aksel Kibar, CMT Profile picture
Feb 9, 2020 11 tweets 5 min read Read on X
There are 4⃣ type of #BREAKOUTS

1⃣Breakout without any retest
2⃣Breakout with a re-test
3⃣Breakout with a hard re-test
4⃣Failed breakout

Following tweets explain each one of those with examples from recent breakout alerts
1⃣ Breakout without any retest

If you have a stop-loss placed below the chart pattern boundary, this is the easiest to trade. Following the breakout your stop-loss will no be challenged and price target will be met.

#BAES #FTSE #UK
2⃣ Breakout with a re-test

If you have a stop-loss placed below the chart pattern boundary, this type of trade may test your patience but still will not challenge your protective stop-loss. Chart pattern boundary will even offer a new entry opportunity.

$NDAQ $QQQ
3⃣ Breakout with a hard re-test

If you have your stop-loss below the chart pattern boundary and it is a tight stop-loss, you might get stopped out depending on the hard re-test.

A trading tactic to re-enter: immediately after price recovers above pattern boundary

$JD $QQQ
4⃣ Failed breakout

If you have your stop-loss below the chart pattern boundary, price will fail to hold the breakout level and you will get stopped out. These are part of trading breakouts. It is important to always have protective stops (BELOW PATTERN BOUNDARY) in place.

$INCY
There is no perfect stop-loss strategy.
There is no perfect indicator that will warn you of failed breakouts and improve your win rate.

There is "leap of faith" 'courage to pull the trigger" with those breakouts.
There is managing risk via protective stops and position sizing.
A recent breakout alert on $AUY YAMANA GOLD is a good example to feature the breakout with a hard retest

Even though the price held above chart pattern negation level, it dipped below the pattern boundary

Those who had tight stops had a chance for re-entry with renewed strength
Wouldn't it be great after a breakout if the pattern boundary was not challenged at all? Unfortunately we have to deal with different type of breakouts. Out of those 2 are easier to manage than the rest.

1⃣Breakout without any retest
2⃣Breakout with a retest

Examples follow...
1⃣Breakout without any retest

A recent breakout alert. A good example to highlight the importance of acting at the time of the breakout.

#SMI SONOVA HEALTHCARE #SWITZERLAND
2⃣Breakout with a retest

This is another type of #breakout that initial protective stops placed below the pattern boundary are not challenged.

Another relatively easy #breakout to manage.
Depending on your trading tactics/tight stop-losses these are relatively difficult #breakout conditions to manage. Hard re-tests are challenging.

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More from @TechCharts

Jan 11, 2023
#THREAD A text-book example that we can learn many fine points of classical charting and technical analysis. $LAUL.NS #INDIA #SENSEX #NIFTY
1) A well-defined horizontal boundary being tested several times before a breakout or breakdown.
2) Right before the breakdown, a short-term chart pattern (pennant) is forming in preparation for a breakdown. Difficulty to rebound from strong support, early indication of a pending breakdown.
Read 4 tweets
Oct 13, 2022
A #thread on impatience and regret cycle.

This is not about charts. It is about the frequently read and discussed trading journal and record keeping.

How it can help to overcome your impatience with an ongoing trade and the constant urge to do something about it.
I'm a big believer of setting strategy/tactics and managing trades when markets are closed. I try to avoid making decisions when markets are open. I can't say I have fully mastered it but with today's technology it is becoming easier to resist the temptation to override decisions
How many times you have acted on a breakout, placed stop-losses, had price targets in place but exited much earlier that the plan? Took profits but left a big chunk on the table...
Read 8 tweets
Feb 5, 2022
Taking one signal (clue) at a time. I usually like to go step by step. Don't read too much into charts. We can't see 4-5 steps ahead.

Here is how I analyzed $IWC Image
In following week's update what I was looking on price chart. $IWC Image
$IWC failed to recover above the long-term average and risked a breakdown of the lower boundary. Image
Read 5 tweets
Dec 5, 2021
Another nugget for you.

If you have identified a set of 100 or let's say 500 instruments to review...

Unless you make it a habit to review them each day around the same time, you will miss opportunities and lack the visual training as patterns develop.
1 year of data loaded on daily scale chart. We look at the right side of the chart to find horizontal setup with several tests of pattern boundary.

Do you now see what we are looking for?
I doubt anyone who is going through their chart studies on a daily basis with the same template diligently will miss this setup.
Read 4 tweets
Dec 3, 2021
I don't trade those short-term H&S top patterns. For those who trade $MSFT can come under pressure for couple of days. Image
$MSFT short-term H&S top neckline at 328.5. Lower boundary of an arguable trend channel at 310. Image
#NATRUALGAS Probably same idea but slightly different duration and different instrument as well. Image
Read 4 tweets
Oct 22, 2021
Was this a pullback? We will find out in the next couple of trading sessions $EUR #FX Image
Update on $EUR #FX Image
Update on $EUR #FX. Volatility is low. That means whichever direction we start accelerating, highly likely we get a decent trend.

I see this as a breakdown and pullback completed. Image
Read 7 tweets

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