Price action structures preceding potential high probability breakouts
Key variables
Price Action Context
Understand the order flow
How to use this your advantage
Key characterstic#1
with trend move
Key characteristic #2
well define support or Resistance level
2 touches from that key resistance or support level
2 touches & 2 reactions
Directional moves do not happen without imbalance in the
order flow
Key characteristic #3
weaker reactions off the key S/R Level
weaker reaction communicates that bulls are gaining strength
over the bears
weaker reactions the bears ability to defend the level is
weakening
1.Clear trend in place
2. Clearly defined key S&R level
3. 2 Touches off the level
4. Weaker Reactions off the level
Probability of a Potential breakout is very strong
The best pattern for trading breakout
ReplyDeletepurely intraday setup
ReplyDeleteUses the pivot system to find the support and resistance..
ReplyDeleteconcept 1 : When the market opens higher, sell it with stoploss and take 1 to 2 percent profit.
when the market opens lower, then buy it with stoploss lower and make money,,.,
support and resistance are calculated from the previous day high , low and open or close.. but the strong resistance would be the yesterday's high and support would be yesterday;s low... if you want the next resistance , it would be the weekly high and support would be weekly low... look out for stocks with good volumes to make money (less)