Break Out Trading ww'tradingstrategies'info

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Break Out Trading ww.trading-strategies.info
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What you can expect to learn

• Three simple questions to ask before you place a
  trade
• What I class as a range
• How to identify range trading opportunities
• How to assess them for potential
• How to trade a range break out

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Business Plan

• Where Im now?
• Where do I want to be?
• How Im I going to get there?
• Where is price now?
• What is it doing?
• How can I get involved? (remember there are 3
  trades Long, Short Flat)

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Assessing for intraday potential

• Objective for day trading an average days
  movement
• ATR average true range
• Is there potential for movement on XYZ cross
  rate?

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Assessing for intraday potential
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What is a range?

• A consolidation pattern
• Generically I call most types of consolidations a
  range
• This keeps things simple
• Dont have to worry IF I have identified the
  pattern correctly
• Dont have to worry about the pattern developing
  into something else

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What is a range?
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Trend line price action evolution
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Generically a range, evolution not a
consideration now.
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Intraday Ranges

• The Ideal location for an overnight range is
  at/near the high or low of the previous days
  high/low.
• If price is consolidating in the middle of the
  previous days high/low range, this is typically
  indicative of continued larger range bound price
  action

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Intraday Ranges

• The overnight range is typically a consolidation
  period during the Asian trading session between
  10pm and 7am the following day (UK hours)
• Dont get hung up on price ranging between these
  times.
• The range can start a lot earlier and not break
  until a lot later than these times.
• Im looking for where the majority of price
  action has been contained during this period of
  non trending activity.

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Intraday Ranges
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Intraday Ranges
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Ideal Range
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Non-Ideal Range
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Larger Time Frame Ranges

• These can develop on any other time frames. I use
  60 minute 240 minute charts
• Obviously you can use larger time frames if you
  so wish.
• Patterns on these time frames would typically be
  considered for swing trading

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Larger Time Frame Ranges
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Break Out Rules

• Trade the first pullback after the break out of
  the established range.
• Stop loss goes past the event that caused me to
  get into the trade
• Targets for intraday trades are based on an
  average days movement
• Targets for swing trading (longer term) ranges
  are the height of the pattern added to the break
  out point.

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Break Out example
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Break Out example
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Break Out example
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Break Out example
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Break Out example
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Break Out example
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Break Out example
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Break Out example
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Break Out example