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I am studying P&F charts. I understand that the most common buy signal is the double top breakout buy. My question is does one place a limit buy order at the breakout price to enter or should one wait and enter after the breakout has occurred and then enter a buy order.
Thanks for your attention.
Although some breakouts never look back, it seems to me a lot of them retrace to at least the breakout level. The ones most likely not to look back probably have some kind of news attached to them that changes the earnings outlook in some permanent way - like a drug company getting FDA approval. Or the chart might have an extended range off the lows where there were several prior failed breakouts.
So, probably the way to play breakouts is to wait for the retracements, except in special situations where you have some reason to anticipate a strong follow through.