Breakout Trading Tutorial

 


Interim high = Last high before BOS

Exit when we start ranging OR BOS



Trading a downtrend / uptrend
You want to catch the 2nd or 3rd leg of the trend. NOT the first leg. This example: Uptrend, ranging, downtrend. The first trade where the ranging trend breaks into a downtrend. That first leg you shouldn't trade. Wait for second leg down or third, when a trend has confirmed.




"The timeframe you identify the trend on is the same one you use for marking all levels."





BOS (Break of Structure) = Trend continuation

MSB (Market Structure Break) = Trend Shift (Trend Reversal)
CHOCH = Change of Character

Above must be confirmed by CANDLE CLOSE

Line charts ignores wicks, only uses candle closes







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