Best Thread Phil Newton's Range Break Out strategy

[STRTRADA]

Would this System work on Normal stocks and Shares or Indices?

 

[options]

Would this System work on Normal stocks and Shares or Indices?

Take a look yourself and figure it out.

The one criteria you want is strong movement.

 

[STRTRADA]

Hi, sorry if my post before was a bit rude i was in a bit of a rush. I have just began working on trying several systems and yours seems the most easiest but considering the market is so volatile I am not sure if I am ready for Forex. I would think this system would only work on a 24 Hour market Like Forex. But I am pretty sure if this Trading system was changed slightly I am convinced this would work on the Indices. Perhaps you could tell me if you have traded on Indices using this system??

Another question when you Trade on Forex How close is it advisable to put your stop loss. e.g 50 pips 100 pips.....

Look forward from hearing from you.

 

[options]

Hi, sorry if my post before was a bit rude i was in a bit of a rush. I have just began working on trying several systems and yours seems the most easiest but considering the market is so volatile I am not sure if I am ready for Forex. I would think this system would only work on a 24 Hour market Like Forex. But I am pretty sure if this Trading system was changed slightly I am convinced this would work on the Indices. Perhaps you could tell me if you have traded on Indices using this system??

Another question when you Trade on Forex How close is it advisable to put your stop loss. e.g 50 pips 100 pips.....

Look forward from hearing from you.

ALL markets are volatile at the moment.
My reply you to wasn't meant to be short with you, but serious in that you look for yourself. You want strong movement from what ever it is you want to trade. It is a breakout strategy that Phil uses for the overnight Asian range on forex. This is only PART of the way you can use this. It will work on ANY sideways ranging chart you are looking at. But it will work on some better than others. It has to break at some point, as it cannot keep on going sideways for ever.
It will not work too well on a lot of uk shares. It will work on indices and a lot of usa shares. Try Ftse, dax, etc.

 

[STRTRADA]

Hi,

Thanks for the Advice. One other thing is that when you trade where do you put your stop loss on the forex at the moment e.g how many pips away from your entry open?

Thanks for the last message.

 

[Newtron Bomb]

Would this System work on Normal stocks and Shares or Indices?

As Options has said this is a pattern since before the dawn of charting and will work on some markets better than other simply due to range of potential movements.

Would this System work on Normal stocks and Shares or Indices?

Yes it will and if you look at any text book you will see this pattern in one of its many differnt guises, exchange range for consolidation pattern. lots of differntly named patterns with many examples on lots of different markets.

You can trade this or any other pattern on any market or time frame some markets will be better than others as the potential for regular explosive movements will develop on a regular basis.

On Indicies;
exchange Asian session for pre market session on the Mini Dow or S&P.

No pre market session?

Exchange pre market for first 20/30/60 mins of active trading session to id a potential range

On Stocks
Never looked at UK stocks myself so cant help there.

US stocks exchange Asian sessoin for pre market session. or again first 20/30/60 mins of active session to id a potential range.

Range break outs are not the only way to trade neither is it the only way I trade.

...considering the market is so volatile I am not sure if I am ready for Forex...

Money flow = Volitility = movement = profitable trading opportunity

You will find volaitility on all markets

If your worried about volitility you may have chosen the wrong career or certainly the wrong market or trading method.

One other thing is that when you trade where do you put your stop loss on the forex at the moment e.g how many pips away from your entry open?

This is clearly explained on the very first post

 

[forexbee]

Usdchf

Hi Phil,

I went thru your method and interesting, i tried one on USDCHF on 15Min chart 12-Nov-08, though i took pullback, not sure how you use stoploss on pullback method, but it did went back to hit the stoploss. What your opinion on this chart.

Thanks,
Fxbee

 

[Newtron Bomb]

the trade you highlight is not a break out as I would class it...

Please read the above comments, read the first post and watch the support videos

At the moment there are not too many break out trading opportunities developing due to Asian session trend due to this financial melt down. although there are a few developing this past week, all be it very rough ones.

My blog is being updated daily on my site with the trading set ups that I'm looking for

 

[Newtron Bomb]

New YouTube video for the day/week ahead

 

[JRP2891]

Apologies if this has been answered before, but i wondered the best way to attain a pair's average daily range? I know the manual way but was hoping for an easier method to use...

 

[Paddington_Bear]

If your chard provider does not have the ADR indicator, you can always find a website that has the information (just make sure it's updated).

I used to use: Forex Goodies; however, I am told this place have come indicators you can download: FxFisherman.

Hope that helps,
Paddington.

 

[Newtron Bomb]

Thanks Paddington,

Average days moves for me are based on average true range indicator on a daily chart with a setting of 100 you can obviously use less like 50 or short term like 14

personally Ilike to look at 100 and 14 to see short term ATR's contracting or expanding

 

[Newtron Bomb]

keep in mind that there have not been too many asian ranges due to volatility over the last several weeks

only now just starting to see some regularity with the asian ranges that are developing in the last week

so if your looking to back test you might have to go back 2-3 months before you start seeing them as ive described

 

[JRP2891]

Overnights in Eur/usd, usd/cad, usd/chf?

 

[Newtron Bomb]

one of the things you will need to consider is that whle these ranges look good... what is teh potential profit that is available from a break out move.

potential based on average days moves doesnt look great so I'll be looking to refine these entries rather than trade teh break out directly.

doesnt mean we will not see a good move off them just means my expectation of movement has been done and for me low potential

 

[JRP2891]

one of the things you will need to consider is that whle these ranges look good... what is teh potential profit that is available from a break out move.

potential based on average days moves doesnt look great so I'll be looking to refine these entries rather than trade teh break out directly.

doesnt mean we will not see a good move off them just means my expectation of movement has been done and for me low potential

Yeah i understand what you mean. I traded the eur/usd breakout this morning on the first pullback on the 3 min. Although i made profit on it, i had the daily ATR coming in at 14040ish so it had gone a fair way already so was a bit risky.

 

[Newtron Bomb]

hindsight is great on days like today... personally I'm on the side lines with euro and swissy waiting for some deepr retracement... I'm happy as thats what my plan says... plus this is my last day prior to xmas week and a few days break so not overly keep on taking out some new positions particularly swingers on a friday when I'm planing some time off... If a day trade fib set ups I will be taking it but for me it could be a long wait on the side lines.

I'd rather be out the market wishing I was in, than in the market wishing i was out.

so for me my expectation of a move was severly reduced and making euro and swissy a low trade expectation.

As you can see it doesnt mean you will not see a big move it just means that on average I wont and I'd rather wait for a better opportunity to present itself.

Happy pippin

 

[mgergs]

Would love to see some more current examples of the break out pullback in action

Thx

 

[saintalan]

Would love to see some more current examples of the break out pullback in action

Thx

Try here

 

[Newtron Bomb]

Stamping feet and making demands doesnt get answers... I can show you my statements but then will you be able to make those types of returns immediately... no. with time and practice, maybe. In my experience showing people statements just pisses people off as they then expect to be making $000's of dollars trading at $1 per point... lets get get real that aint going to happen.

Understand that this is a business and no business make it big overnight.. I make no hype, no promises, no get rich quick schemes like those that hit your inbox...

Trading is bloody hard work and the soon you all realise this the sooner you can drop the world owes me attitude and start thikning about how to make trading work for you... Sadly its different for everyone as a major part of trading success revolves around your personality and risk profile.

So batten down the hatches, start writing a trading plan, test it, refine it, then when your happy follow it to the letter. Forward test it for at least 6 months, then and only then should you even consider using real money.

This is one of the few if the only professions in the world where you get to try before you buy... so why people insist on dumping their hard earned cash down the Thomas Crapper is beyond me.

I have a plan for tomorrow based on my strategy... do you?
YouTube - Forex Video | 01 June '09 | Analysis