Technical - Breakout

- Ignore the 1st breakout attempt
- Steep trendline is more likely followed by a breakout
- Use the end of wicks to form a secondary level below/above predominant level to determine breakout
- Confirm validity of breakout by checking with MACD & Stochastics to see if the trend is in agreement
- Double bottom/top formation, Head & shoulders (Previous trend must be in place)
- Symmetrical triangle
Conditions: 20EMA relatively flat
Entry: Break above trendline = Long, break below trendline = Short (Wicks break not considered, candle must be in correct direction at break)
Interim: Modify trendlines
Stop loss: below trend line
Exit: Pivot, fibonnaci, round numbers to 2 decimal places, add height of formation at widest to breakout point
- Fast & high amplitude price movement towards trend-line suggests that MKT sentiment is largely favoring a breakout
- Ascending/descending triangle: Diagonal support & horizontal resistance
Currency pair trending in same direction prior to formation of triangle pattern
- Pennants/flags
Conditions: Flags are usually slanted but they can be horizontal, flagpole has less candles than pennants and flags
Entry: 10% of flagpole (including wicks) to top of flagpole
Stop loss: 25% of flagpole
Exit: 100% of flagpole to top of flagpole

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