Breakout vs Retracement trading

[jamstock]

Hi Dale/ guys. When we see a good setup and rejection candle at prime location there are 2 approaches to get into the trade. The first is to wait for a retracement and place stop above/ below the rejection candle. The second is to take the breakout of the rejection candle and either place the stop above/ below the rejection candle or above/ below the breakout candle.

I’m wondering about using a strategy where I ONLY enter on the breakout of the rejection candle (after London/ US session), and put the stop above/ below the breakout candle (to have a tighter stop). I only have a couple of years experience in the markets, so wondering if this is a viable strategy/ if anyone else has tried it.

Would love to backtest but have no idea how!

 

[gicmarkets]

breakout strategy is very effective in forex during london or US session. When any support and resistance is broken, then market can move with great force.

 

[jamstock]

Thanks for the input gicmarkets. It doesn't really answer the question though....

 

[Dirk Groenewald]

Hi jamstock,

I use this setup to trade London breakout. I do see a retracement happen about every time after a big breakout. I do believe there is some pips to make.