I was originally going to post this in another thread but believe it warrants a thread of its own.
I want to discuss the question: What is the best way to trade breakouts using VSA
I wanted to discuss buying on up bars vs buying on down bars. Having studied a lot of VSA including books, webinars etc... It appears that it is definitely best to buy on down bars e.g. no supply.
This allows for high R:R trades in low risk areas.
Before I was only looking at trading breakouts and can see why I was getting chopped up all over the place and unable to produce high R:R trades. I was entering on big up bars.
This leads me to the question. How is it best to trade breakouts.
1. Wait for pullback
2. Don't wait for pullback
What is the best way to trade (number 2.) without entering on a wide spread up bar as price breaks through?