Breakouts?

I’ve studied the course a fair a bit, it’s not obvious to me the rules regarding breakout trading. I have some success trading breakouts, and then some won’t work so not good enough to be profitable. How do you filter breakout trades?

Breakouts need follow through. Weaker BOs have deeper pullbacks and often BO tests to BO point. One example trade is strong BO with reasonable follow-through can just enter on the close of a good follow-through bar. if market then reverses odds are there will be a small 2nd leg where you can get out break- even on or near break even. (Since BOs usually has 2nd leg due to trapped traders, so with the follow through many more traders will believe the BO will be successful and wait for a pullback to exit if trapped in, or enter if trapped out)

Thanks for your reply, think I get suckered in to trading breakouts too early, and then get trapped a fair bit. I’ll try your advice and wait a bit for a follow through bar and experiment a bit. Thanks 

It would be good to see some live trades of it. I’ve learnt a lot from live trading videos. It a shame really there aren’t more available for al brooks methodology. I’ve been trading 2nd entry pullbacks, and trading range reversals. A lot of times, there isn’t way catching the bigger moves. I know you don’t really need to necessary, but it would be nice to have an approach to trade these. 

Hello Tom,

There is a comprehensive list of what makes a strong and weak BO in the course. Maybe you haven't seen it yet? Check out 15D slides 9, 10, 11 and 12.

Thanks, I’ll rewatch. Maybe I skipped some slides. 😮

I have gone through the course quite a lot. I’m just reluctant to do it too much moving forward. It’s takes a long time to process the information, it’s pretty overwhelming, or has been. 

Live trading videos would have been a lot easier to learn from. Even the trading room isn’t a true screen recording. A years worth of screen recordings would more helpful than anything really.