ivanlim wrote:True. But what happens when the breakout bar is too strong,that by entering the next bar,the stop loss would be very big?
Another option would be to consider feeding your bet size in gradually to properly test & validate a breakout move.
So, if you're staking say 2.5% as a total bet size for that particular trade opportunity, you'd feed in 1% of the size on the initial breakout & only begin to add to, or compound your position once the move confirmed it's genuine intent.
That option ensures you don't miss an aggressive move up or down through a potentially important level, where price might simply shift away without offering a realistic chance of getting onboard a pullback.
The other major benefit of that type of play is the fact you're not outlaying excessive risk up front (or at the pullback entry) at the start of the move in order to test the validity of the breakout move.