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Those who have been around my site for a while will be aware that I’m not a fan of taking breakout trades. I’d much rather let the level break and then seek either breakout failure or breakout pullback trade opportunity.
But there is another option.
Entry BEFORE the breakout level.
Let’s look at an example and see how this plays out.
We’ll start with some higher timeframe context from the 30 minute chart.
This twitter post will give more insight into the nature of the news-event level, if you’re interested.
As a higher timeframe trap has been sprung, my intent is to take any early entry LONG for a potential bullish open drive.
If price behaves in any other way, I’ll pause and reassess.
If you have strong expectations of a level breaking, it’s absolutely fine to seek continuation entry prior to reaching the level. Be sure it’s a valid setup. And confirm that it offers a minimum of 1R potential for partial profits inside prior highs/lows, before the breakout.
Let it break. And then add if it holds.
And with luck you’ll get one that runs a whole lot further than mine did this day.
Happy trading,
Lance Beggs
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