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Tackle Today: Breakout triggers

August 27, 2020

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When do you enter?

Traders,

One of the most important patterns to learn to trade is the Bullish Breakout.  In the STEP System course, module 4 is dedicated to Bullish Breakouts.  After you have learned how to identify them, you also must learn how to enter into a breakout trade with confirmation.  STEP stands for Stop Loss, Target, Entry Point and Position Sizing.  Have you defined your Entry Point rules for Bullish Breakouts?

There are 3 basic mechanics to consider.

  1. Conservative Entry = 10 to 25% of the daily ATR above the high of the confirmation candle (with a price close above resistance)
  2. Alternative Conservative Entry = 50% of the daily ATR above resistance (regardless of the time of day or closing price)
  3. Aggressive = 10 to 25% of the daily ATR above resistance (regardless of the time of the trading day or price close)

How are you trading breakouts?  Which entry trigger do you use most and why?

Building trading rules, that fit your trading personality and style, is one of the most important exercises any trader can do.  It is critical for your long-term success to have defined and repeatable trading rules.

Entry Triggers are a part of the overall trading plan using STEP System principles.  If you have not built your rules yet, consider reviewing Module 4 of the STEP System and spend some time to learn and then build your own trading rules for Bullish Breakouts.

Review the course here: https://tackletrading.com/course/step-the-scouting-reports-system/

#TeamTackle


Chart of the Day

Microsoft Daily Chart

$MSFT broke out on Wednesday and is following through nicely early in Thursday’s trading.  It was a candidate on this week’s Options Report.  Review the report here: https://tackletrading.com/options-report-august-22nd-2020/


Video of the day

Special Webinar Replay – Stock Splits

If you missed last night’s Special Webinar on Stock Splits, watch the recording here.


Traders Lounge 11 AM EST

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Cashflow Club 8:30 PM EST

Held every Thursday before Friday’s option contract expirations, this show helps you perfect your favorite cashflow strategies.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.


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