Quote:
Originally Posted by limestreamx
okey mikkom let say the bar is green that should be a breakout right? can i open long then? or we must look for other indic for trend continuation? thanks in advance
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Green or red bar is a signal for breakout, not much else. Some breakouts are good trend signals while others are just false breakouts that don't necessarily mean anything but IMHO breakouts when used well are very powerful tools. One of the reasons is that people tend to put their stops above the peaks therefore a small breakout could hit them and cause trend change (or continuation depending on a situation). I don't believe in overly simplistic view on trading so breakout really is just a breakout for me - what happens after the breakout tells much more than the actual breakout.
20 day breakout is "the classic" trend signal so you might want to try to use that if you want to look some particular breakout.
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