To Breakout Trade or Not to
Below, I copy something I wrote in the Slack room. Thought' I'll preserve it here.
1. Trader should know how to differentiate between a Trending Market and a Sideways Ranged / Boxed Market... on The Time Frame they are Looking at.
2. Keeping above in mind, you'll then know that different time frames can have different situations, one time frame is trending the other is sideways.(keep waves within waves within waves)
3. Keeping above in mind , one should trade both situations differently.
e.g. Setup 1 takes this information into account. A setup one tries to signal you, that the 5xHTF is trending while current time frame is sideway.
FACT: Higher Probably Setups are Breakouts in the Direction of Higher Time Frame Trends
that means there are higher chances of breakouts in the direction of the trend of higher time frame, (which means sometimes it will breakout against it as well) signal is created in that direction. meanwhile on the current time frame it shows a 3 and 4
4. Now when you trade Fruit method, that information does not simply vanish and dies. it's still valid. but you should be able to know what you were doing and translate it into fruit method. You should know this concept and apply it without indicators (purple) indicating it to you. if you don't yet know the above concept then try 5 batches of T20 using Setup 1/2 only.
The POINT I'm MAKING IS Hiding here
Conclusion: from the above the point I'm making is that trade breakouts in the direction of TREND and Trade Reversals in the direction against Trend
don't trade reversals in the direction of RANGE or Breakouts in the direction against trend....
hope this helps and I made my point.