Friday, May 28, 2010

Breakout Setup


After Reversal Pattern, I'll show some breakout pattern which is also reliable.
1. Draw Support - Resistance around the price
2. Identify Price Action near the S/R. Favour the stronger Price Action. In this case the Price at Support is strong. It's likely go the opposite side.
3. Wait the breakout of favorable direction.
4. Enter 2 or 3 tick below the breakout price if go for long and vice versa
5. Exit based on profit target. 10 Ticks is recommended.

It's nice to exit on profit, but it feels better after exiting the price reverse aka. exit near the max profit :)

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