Monday, March 19, 2012

HT Entry Setups: Breaker

This is a major resistance / major support breaker. The minimum amount of resistance (support) required is a double top (double bottom). You want the price structure / context to agree with the setup though, so you don't just want to be taking every single DT/DB break, you need to filter out the lower probability ones. If the breaker is at the HOD or LOD, the setup is higher probability. Like I said, you want to filter out the lower probability setups and try to only take the stronger setups. Stop starts out at 1 tick below / above entry bar. After you meet target on the first contract, you want to move stop to -1 point so that you are risk-free on the overall position. After movement in your favor of 3+ points, you want to move stop above your entry price. Worst case scenario, you are still securing a profit on the overall position.




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