Breakout MasterclassBenzinga Workshop

Rolf from Tradeciety.com

Who am I?

•Age: 34

• Trading experience: 13 years

•Markets I trade: 90% Forex

• Trading Style: Short-term swing trading

• Trading Strategy: Mostly price action and momentum based. Minimal use of indicators.

Breakouts AreEverything

Consolidation + Breakout connect two different trend phases.

Consolidation + Breakout can also be a trend-continuation connector.

Strategy Premise• Forex is a mean reverting market which means that the price

tends to revert to the mean after a trending period.

• This strategy uses this “rubber band” effect to scan for over-extended trends and then wait for the momentum the trend snaps back.

Trade Selection I: Trend✓ Trend with at least 2 trend waves – preferably 3 or more.

✓ The longer the trend, the better.

✓ Trend must be orderly and not too swingy.✓ The cleaner the better.

✓ No single-wave trends with 1 wave.

Trade Selection II: Exhaustion✓ We don’t pick tops and bottoms and, therefore, we need to

wait for clear signs of exhaustions that the oxer-extended trend is losing momentum.

✓ Exhaustion can come with change in high-low structure or divergences.

Breakout III: Buildup✓ Only breakouts with a full close are tradable

✓ Breakout buildup may improve your chances

Pullback TradingFramework

When do we trade pullbacks?

5• When you miss the initial entry

• When the initial breakout was too strong (large stop)

• As a standalone strategy

Dirty Approach

• Price moves back above/below the breakout area and then

comes back

Benzinga Special

www.tradeciety.com/benzinga