Goldmine for breakout traders

1 de abr.

Morning folks,

So, it seems that "222" Sell last time was not a bad idea at all. Despite that BTC stands in rectangle we've got two nicely looking downside bounce. Now we have some nuances with the BTC performance, but to keep it simple it is mostly suitable for those who like to trade breakouts.

If you do not want to wait a bit for clarity on daily chart, in what direction market still will follow, but want to trade today we could offer you few options.

First, is, if you want to bet on upside breakout and take long position - try to do it as closer to the rectangle bottom as possible. For example - it is nice "222" Buy is forming and almost ready to go.

The opposite is true for bearish position. Now we have no patterns, but they could appear later.

Finally, for the breakout, if you do not care on direction. The simplest way to act is to use Stop Sell and Buy orders at once, placing them just outside of rectangle. When breakout happens, you just cancel the opposite order. That's all.

I mark today's idea as "neutral", because it is volatility-based.