Breaks Against Bias – Their Failure is My Success

 

We've previously discussed the idea of fading breaks which occur against the market bias.

Often they're a trap!

If we can anticipate that trap then we can position ourselves for a successful trade by entering at or before the point of their failure.

See here if you missed the prior articles on this concept:

This concept can play out in many forms and on different timeframes. For example:

  • TTF CPB or BOF setups
  • LTF 3SR or Spring/Upthrust triggers

Let's look at two slightly different examples from Wednesday's Crude Oil session (to take advantage of the crazy volatility that CL has offered in the last few days!).

Don't let the low timeframes freak you out. The concept applies no matter what timeframe or market you trade – failed breaks against bias can provide you with great trade opportunity.

(1) Trading timeframe CPB trade.

Breaks against bias - anticipating failure

Breaks against bias - anticipating failure

Breaks against bias - anticipating failure

Breaks against bias - anticipating failure

 

(2) Trading Timeframe PB trade.

Breaks against bias - anticipating failure

Breaks against bias - anticipating failure

Breaks against bias - anticipating failure

Breaks against bias - anticipating failure

All markets… all timeframes.

When a breakout occurs against a larger market bias, anticipate a failure.

Trending markets… find breaks of swing highs/lows against the trend.

Ranging markets… find breaks around the edges of range support and resistance.

Happy trading,

Lance Beggs

Written by

YourTradingCoach - Admin

2 Comments to “Breaks Against Bias – Their Failure is My Success”

  1. Sam says:

    Hi Lance,

    Thanks for this article… this the thing I am still no able to master. I am still struggling in this area.

    One more thing always come in my MIND as a Curiosity that how the place you have setup where you do your trading?

    I mean how many screens? How the place look like? Any rules you have stick there on the walls? and what each screen is for (mean what it does have on it) and how you utilize it?

    If possible pls enlighten.

    Thanks a lot

    Regards
    SAM

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