November 17, 2011
- in Uncategorized by schooloftrade
Fake-out breakout Day Trading Strategy
Today we used a simple fake-out breakout day trading strategy to earn our daily profit goals, and it couldn’t have been easier when you use the correct strategy.
Overnight last night crude oil futures tested the highs from Wednesday, made a few ticks higher-highs and then collapsed back below the highs from Wednesday. I call this a fake-out breakout because it failed when it attempted a breakout.
The fake-out breakout last night was very significant because of WHERE it occurred, at the PHOD which is one of the most attractive levels for any type of trader. We know that when price fails at the PHOD it will then go down to the PLOD, and visa versa.
This morning when we began trading we had the benefit of seeing that fake-out breakout overnight and we used that anticipate where price was most likely to go. We couldn’t just sell short, we then needed to wait for the best time to enter the trade(s) short, and we got that once we saw the patterns on the 89 and 34-range charts fail.
Our day trading strategy is effective trading any market, any timeframe, and today we profited trading crude oil futures.
Fake-out breakout day trading strategy for Mini-Russell Futures
