The mantra of a conservative breakout day trader

I’m a somewhat cautious breakout day trader.

I take note of the pace and harmony of the market.

I favour trades that are in the direction of the current dominant pressure.

With a neutral view, I let a break build up ‘properly’.

I pay attention to magnets such as a double zero or fifty price level.

I’m observant of obstructive elements on the way to a target.

And I’m aware that being in a trend or a range has implications.

Moreover, I do not need a trade; therefore, I do not search for one.

To that end, I spot my trades rather than find them.

I monitor significant financial news and do not trade their effect.

My entries are in association with the 25 exponential moving average.

Added to that I use the squeeze or confluence of setups such as a pattern break, a pullback reversal, a pattern break pullback or a pattern break combi.

A signal bar is highly desirable, a break of which is my entry which in turn becomes my entry bar.

I wait for an acceptable break, and I’m patient to avoid false and tease break traps.

I exit at the (1) target or an appropriate (2) resistance, (3) technical or (4) reversal point.

My goal is to determine the nature of a break, consistently.

  • A breakout day trader
  • The pace of the market
  • Dominate pressures
  • The thickness of a buildup
  • Is a magnet present?
  • Are obstructive elements on the way to target?
  • Trending or ranging?
  • Don’t need a trade; don’t search for one
  • Spot trades rather than find them
  • Awareness of significant financial news
  • Entries and the 25 EMA
  • Add to that the squeeze or confluence of a setup
  • A signal bar is highly desirable
  • Wait for a ‘proper’ break
  • Exit at the target, resistance, technical or reversal point
  • The goal is to determine the nature of the break

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