Break Points | Break Point Signals | Break Point Signal Lines |
Hi I am going to introduce a concept that I learned from trader, user-name gumbtg. Although the concepts were never formerly named while I was learning them from this young trader I have dubbed them "Break-Points" which are a class of intersecting points and can be used on any chart, time frame, or indicator. The concept remains the same through out each different application.
What is a breakpoint? A breakpoint is the intersecting point plotted after the trendline is broken. In example if the trendline is bullish and price finally reverses to break the trendline bearish the exact point at which price has broken the trendline is then plotted, as seen with the transparent blue ovals. This becomes the breakpoint.
From this breakpoint, which remember is a class of intersecting points, the Break Point Signal Line is drawn. The Break Point Signal line is a horizontal line that extends outward and remains active until broken, as seen with the orange horizontal lines. Once price trades in this same example bullish and close above this line a break point signal is confirmed.
What is a Break Point Signal? The breakpoint signal in this example is a bullish signal to go long, once price trades back above this horizontal line and closes there it signals a buy signal to go long, as seen with the blue tailless arrows.
To summarize: Bulls, the intersecting point where the trendline has been broken creates a signal to go long AGAIN once price closes above this value. And Vice Versa. The bear side is the exact same concept except it is applied as an inverse, once price closes below the signal line it confirms a signal to sell short AGAIN. The signal is always in the same direction as the original trend. The Signal line is always a horizontal line drawn from the intersecting point where the trendline was broken.
I learned these concepts from another Trading View Member, Username GUMBTG, who I will tag in the comments below. Please visit his profile for more examples and trade ideas specific on breakpoints, however I do not know if he is or will be calling them Break Points, Break Point Signal Lines, and Break Point Signals. Those names I guarantee will be refereed to in my analysis on my trading ideas. Thank You, God Bless.
What is a breakpoint? A breakpoint is the intersecting point plotted after the trendline is broken. In example if the trendline is bullish and price finally reverses to break the trendline bearish the exact point at which price has broken the trendline is then plotted, as seen with the transparent blue ovals. This becomes the breakpoint.
From this breakpoint, which remember is a class of intersecting points, the Break Point Signal Line is drawn. The Break Point Signal line is a horizontal line that extends outward and remains active until broken, as seen with the orange horizontal lines. Once price trades in this same example bullish and close above this line a break point signal is confirmed.
What is a Break Point Signal? The breakpoint signal in this example is a bullish signal to go long, once price trades back above this horizontal line and closes there it signals a buy signal to go long, as seen with the blue tailless arrows.
To summarize: Bulls, the intersecting point where the trendline has been broken creates a signal to go long AGAIN once price closes above this value. And Vice Versa. The bear side is the exact same concept except it is applied as an inverse, once price closes below the signal line it confirms a signal to sell short AGAIN. The signal is always in the same direction as the original trend. The Signal line is always a horizontal line drawn from the intersecting point where the trendline was broken.
I learned these concepts from another Trading View Member, Username GUMBTG, who I will tag in the comments below. Please visit his profile for more examples and trade ideas specific on breakpoints, however I do not know if he is or will be calling them Break Points, Break Point Signal Lines, and Break Point Signals. Those names I guarantee will be refereed to in my analysis on my trading ideas. Thank You, God Bless.