Phil Newton's Break out Strategy | Price Action Forex Trading - Part 2

[fishingforexpips]

Good information Phil. Forex is the way to go.

James.

[BillyFeynman]

False breakouts tend to occur at the end of the trend. An alternative, if you want to stick with traditional breakouts is to wait for a new trend to form (using a moving average cross or whatever you like) and then only trade the 'first 2' breakouts of that trend. This 'first 2' rule stops you hunting for breakouts once the trend becomes exhausted.

[realmadridvideos]

Great Video !

I am using similar strategy except I wait for a close on 4hr chart.

[laton2010]

i have my doubts if anyone makes money on breakout or to be more clear i am not sure anyone makes money in forex.hahahah

[81borgy]

Hi

Phill i see the point your trying to make in the video and you always explain things well to a farly newbie like me but wouldnt you agree that often the main movement of the day for a pair is caused by news releases and when the news is released the price can move rapidly and waiting for a pull back will mean the opportunity is lost

[FreeFOREXautoROBOTS]

I have great results with EA

[BSJWright]

@MoHo666 Phil uses tradestation, but he's in the process of moving to a different one as he's been having issues with it freezing recently. Current favourite is MT4 but I understand he is going to have modification scripts written to ensure orders are correctly placed, etc.

[MoHo666]

what trading platform do you use?thnx MoHo

[afqawq]

I tried this system and I must admit that it works amazingly well. The good thing about it is that it isn't time consuming. I use the daily strategy, and all I have to do is log in once a day to the system and simply follow the signal to buy or sell. Simple and easy to understand, and - the most important thing - I earn money this way. This really is a very good system.. Learn how to make easy money at [ MakeMoney8ZZcom ](replace ZZ with a dot)

[iamgambler]

Same as Fibonacci, Movering Average ....... so many false signals, very unreliable. You now uplift/downlift range to filter false enteries, but again, not reliable ........

Gambling is very difficult to win!

[adminmovie]

Phil Could u explain how we can put stop loss,take profit in this pull back breakout strategy.

[narul2009]

Hi Phil,

I understand that trade entry is done after the real breakout(5th). Sell stop will be placed at pullback breakout. Is that right?

Very good vedeo. Thanks for your reply in advance.

Arul

[pnewton69]

Hi, as teh name suggests I'm looking for price to break up or down out of a range then pullback as described on video number 1

[SuburbanHomeboyUK]

Hi Phil,

If I am using a 15 minute chart and i spot a clear break out, would I then drop down to a 2 minute chart to look for the pull back and then enter as the next candle passes the previous high? (I just done that and got stopped out - I was wondering if I did something wrong?)

Ian in Birmingham

[pnewton69]

Hi Ian, not all trades are going to be winners, the sooner you realise this the sooner you can move on. Just been stopped out myslef on a low time frame break out on EURJPY, now looking for a re-entry

[SuburbanHomeboyUK]

I dont have an issue with losing as long as I followed the rules. It was clarificatiion of the 2 minute pull back rather than the 15 minute pull back I was after. I am going to join your trading room soon. I have a few other priorities at the moment but I like your methodology.

Your web site and videos on fx street are excellent.

Ian

[pnewton69]

hi Ian, taking a lower time frame entry is fine, personally I use a low time frame entry initially which if that doesnt work out then usually the 15 min entry will present itself as either confirmation or a re-entry option

[andysfx]

totally awesome

[clever786]

excellent tutorial, very easy to understand. My question is are there any periods where breakout should be entered into without waiting for pullback. A lot of ppl i spoke with say they donot wait for pullback during london/ny hours in most cases? how sound is that?

[pnewton69]

There are a few occasions where you can do that but peronslaly I dont to avoid false breaks and as we all know you dont know its a false break until its stopped out out.

Ultimately you can look for other means to add as confirmation of direction

[johnlvs2run]

thanks for the helpful video

[permanentjaun]

Very well done and thought out. The question I have is your exit strategy once you're in the trade. You noted your TP is somewhere around the ATR or two times your SL to create the 2:1 ratio. Is that correct?

I would assume that means your TP and SL are variable depending on the range that has been created. How often are you seeing your trades swing in to profit, but then not hit the TP as the momentum on the breakout has ended?

[pnewton69]

Hello, thanks for your comments.What you will have heard me say is that the first scale out target is 50% of the stop loss size.This is where I will remove 2/3rds of my position.so a 30 pip stop loss size I will remove 2/3rds at +15. This is how I manage a break even trade rather than move my stop loss levels,been stopped out too many time for +2 in my early trading by doing that.You can use any combo you like.... 1/3 at a larger target..3/5ths-2/5ths combo. 50/50 and so on. Hope that helps

[patrino]

hi

Your scale out procedure that you mentioned. Am i correct in understanding that you close 2/3rds of the position when you reach 50% the stop size. 20pip stop, then at +10 you close 2/3? Wont this negatively effect your risk reward? I currently have 100s of +2,+3 trades in my diary where i have moved stop to break-even and then been stopped on a retest. Thanks for any advice on the subject.

[pnewton69]

no it doesnt, if i have 20 pip risk and i take 2/3rds off for +10 I now have zero risk on the "position" without moving my stop loss levels

[patrino]

ok, i will give this method a try. My strategy is very similar to what you show in your videos. The one thing that has stopped my progress is continually being stopped at break-even. Hope-fully this method will sort-out the issue. Thanku