Anticipate the Breakouts: Time-Volume-Momentum Relationship

Jun 30, 2017

Hi fellow

Thanks for your response to my last post in which we discussed what happens after a breakout.

In this post we will discuss better ways to anticipate a breakout.

Although the types discussed are ideal that doesn't mean they are not possible in real time. That's why I have been posting some examples.

However, anticipating a breakout does not mean that it will surely happen and you would end up in profit. That's the harsh part of trading and we should accept it. The least we can do is to have a plan and execution of that plan.

These types of breakouts are common on lower time frame charts. But if and when they occur in larger time frame, their magnitude and effect multiplies.

Rest of the notes are on the chart. Have fun.

Your likes are the only motivation to post better analysis in future.
Trade safe, stay healthy

Best Regards
Afraidtotrade

Jun 30, 2017

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For more examples hit the like button

Jun 30, 2017

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Previous post on how to trade breakouts

Jun 30, 2017

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For those who have problem reading from chart:

TYPE 1

> In this type up waves are high momentum high volume waves and take less time to touch the resistance

> Momentum is faded in down waves; volume declines and these waves take longer time to end than upwaves

> In Simple terms angle of inclination is steeper in up waves and less steeper in case of down waves

> Best buying opportunities could be in earlier segments of wave e and wave g with SL below the low of wave d and f resp. (just an e.g.)



TYPE 2

> In this type up waves are less steeper, have less momentum and take more time to touch the resistance

> Momentum is strong in down waves which are steeper; volume increases and these waves take lesser time to end than the up waves

> Buy only if upside momentum has been strong in higher timeframe (buy in same manner as in type 1)

> Its better to avoid these setups or else one can carefully observe price action if breakout actually happens

Jul 1, 2017

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More examples will be posted soon.

Jul 1, 2017

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e.g.

Jul 1, 2017

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e.g.

Jul 2, 2017

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Bar by bar price volume analysis may also help in anticipating breakouts, see 👇