Breakouts VS Pullbacks | Which One To Trade? (It's not as cut and dried as you think!)

[@roofnugs3202]

Great video, very early in my trading career someone was kind enough to explain the breakout pullback (although they called it a break & breathe). This tip is absolute gold, strangely this is the first time I have seen someone else mention it. Once you are aware of this particular bit of price action you will see it all the time.

[@Netpicks1]

Thanks for sharing!

[@Netpicks1]

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[@vickytoxtle1441]

Thank you for sharing your knowledge

[@Netpicks1]

My pleasure

[@transcendenttrader2078]

Great stuff! I consider myself a breakout trader, but I include pullbacks because somewhere in the pullback there is usually an area that can represent a breakout area. So lots of overlap in these concepts. Just wondering, when you play a break of a pullback channel, do you keep your stop loss on the other side of the channel, or do you look for a tighter area within the channel? As an intraday trader, I do the latter so that momentum moves can maximize my R.

[@Netpicks1]

A break of the pullback channel is just one type of entry and *not* usually my favorite. I much prefer, if possible, to either position at any sign of accumulation on the trading time frame OR a lower time frame breakout that comes before the higher time frame one. I use ATR stops as I look for a swing move and prefer to give the trade some room. The trade off is a smaller position size. For you as an intraday trader playing the momentum, a tighter stop makes good sense. Any failure of momentum hitting the exit door quickly is a solid play. Thanks for the great question!