False breakout
There is no code, no crystal ball, no nothing to check for false breakout. You only know after the event if breakout was false or true.
Ok buy in terms of algo trading I mean not manual trading.
What part of "You only know after the event if breakout was false or true" was unclear?
Algo or manual is irrelevant.
It was false if price returns to the channel.
What part of "You only know after the event if breakout was false or true" was unclear?
Algo or manual is irrelevant.
It was false if price returns to the channel.
sure both of you are right but I asked some code statements example from the angle you see the context, how to check the bars in mql language
I'd say you just need to define
(1) a virtual entry level (range boundery or previous resistance level) that tells you "we're having a breakout now" once it is broken and
(2) a virtual stop loss that price has to fall back to after fulfilling rule (1), which then tells you that the breakout hypothesis has been falsified;
point 2 is your real entry
Usually if your system is properly tuned, you will see a decent amount of rather fast occurring reconfirmations in a relatively short time span, which indicate that something is about to happen, before it takes off.
It's undeniable because the contrast is very high.
For example you can hear nothing for many days, and then it starts to tick multiple times in an hour so it's undeniable that something's up.
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