Break Out Trading ww'tradingstrategies'info

1
Break Out Trading ww.trading-strategies.info
2
What you can expect to learn

• Three simple questions to ask before you place a
  trade
• How to identify ALTERNATIVE range trading
  opportunities
• How to assess them for potential
• How to day trade with a 5 minute decision
• OR convert this to swing trading strategy

3
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)

4
5 Minute Day trader

• Rules are simple
• This trading method involves four simple steps.
• Identify a trading opportunity
• Select a direction
• Place your trade
• Manage your trade later at a specific time

5
5 Minute Day trader

• 1 - First of all you need to identify a trading
  opportunity.
• An Inside bar on the 8hr charts
• My 8hr bars are set to 10pm-6am, 6am-2pm,
  2pm-10pm

6
5 Minute Day trader

• 2 - To select a direction you need to look at the
  bar immediately prior to your entry bar between
  14.00 and 22.00 the previous day.
• If the bar closed higher than the open look for
  a long entry
• If the bar closed lower than the open look for
  a short entry

7
5 Minute Day trader

• 3 - Now you simply place your trade.
• If you identified a long opportunity place a
  buy order above the high of the inside bar, with
  your stop loss order below the low of the inside
  bar.
• If you identified a short opportunity place a
  sell order below the low of the inside bar, with
  your stop loss above the high of the inside bar.
• The entry order should be 10 pips above the high
  for a long trade and 10 pips below the low for a
  short trade.
• The stop loss order should be 5 pips below the
  low for a long trade and 5 pips above the high
  for a short trade.

8
5 Minute Day trader

• 4 - After placing your trade you can forget about
  it until 14.00 when you will need to go back
  and check on it. You will then either
• Cancel the orders as they have not been triggered
  
• OR
• Raise your stop loss to 10 pips below the closing
  price at this time for a long trade
• Lower your stop loss to 10 pips above the closing
  price at this time for a short trade.
• You could simply close the trade at this time
  however continuing will keep the trade
  mechanical and permit accurate back testing.

9
Example day trade
10
Example swing trade
11
Example swing trade with compounding
12
Example using 60 min charts