Breakout Trade Example

The trend is up. You can see the higher highs and higher lows. The green 200EMA is sloping 45 degrees. We are in business. Be patient and wait for breakout trades.

How? Wait for prices to retrace. That's important. They all need to retrace to regain energy before the next up surge.

After prices retrace wait for a long candle. The close of this long candle must be higher than the high of the previous 2 candles. This is when it show signs of breaking out of the retracement. Wait patiently.

When the above critetion happens, open a long trade after the close of the breakout candle, ie next candle.

Place stop loss at the swing low and wait for prices to continue the uptrend. Close trade if price hit the stop loss level. Otherwise wait and take profit when the red and green moving averages cross.

Happy trading