False Breakout Entrance Point

[kkoskela 2]

Hello!

 

When entering a false breakout, what is the ideal entrance point? I'm guessing it can depend on the chopiness of the price action. I'm assuming if a stock was really choppy, it might be better to wait for a 1 minute candle stick or 2 to close below VWAP before going short? I have also seen traders enter trades exactly when the price hits VWAP. I typically have waited for a 1 minute candle stick to open and close below VWAP, unless the stock looks very weak. I'm wondering what people's thoughts were on this.

 

Thanks!

 

Kevin K

[Abiel 474]

Hi Kevin... Andrew teaches in classes that if the stock can´t hold VWAP and moving averages you can go short below VWAP. If you watch this

he explains that he went short as soon the price was going to break the VWAP.

 

Last friday we traded X in the room,it was very week all day, suddenly @ 12:35 a very bullish 5 min candlestick appeared and the next 5 candlestick were above WVAP to then lose and test and lose again WVAP… I guess the safe entry would be around or below VWAP, you could enter the trade above VWAP if you see the stock weak, losing or not holding moving averages above VWAP, with tight stop and good execution of your stop.