Trading Breakout Failures; Which Entry Pattern Works Best?

By Joseph James of Sideways Markets

Head-Trader at SchoolOfTrade.com • Jul 15, 2020 at 10:56 PM EDT

We’re seeing nothing but range-bound markets on the charts tonight, which means the plan for tomorrow is rather simple; buy low, sell high, and focus on breakout failures around the edges of the range.

Video Length: 00:50:06

We’re seeing nothing but range-bound markets on the charts tonight, which means the plan for tomorrow is rather simple; buy low, sell high, and focus on breakout failures around the edges of the range… let’s go!

E-Mini S&P Looking for Another Bull Breakout…

E-Mini S&P is bullish and range-bound heading into Thursday’s session, and with the bulls in firm control of the momentum, my plan is to buy breakout failures below the range or a 123-breakout to new highs tomorrow morning.

Buy the hidden channel support with a 2-Try Trap
Buy below the range using a breakout failure pattern
Sell the resistance highs using a crown reversal pattern

(Click on image to enlarge)

Crude Oil Digging Its Way Back to Recent Highs…

Crude Oil is bullish and trying to retest a major high at 41.63 on Thursday; we finished today’s session with a strong spike higher, and I’m looking to get long off the lows of a channel using a 2-try trap pattern…

Buy the low of the bull channel with a 2-Try Trap entry
Buy below the range at support using breakout failures
Avoid Selling the high because of the rising support trend line

(Click on image to enlarge)

Gold Buyers Looking for Another Pendulum Swing…

Gold is bullish and sitting in the middle of today’s range; my goal is to find breakout failure setups at key support levels below the range, such as 1808 and 1804 tomorrow morning.

Buy below the range using breakout failure patterns at support
Sell above the range using a crown reversal pattern at resistance
Avoid the middle of the range

(Click on image to enlarge)

Disclaimer:

Join our Free Trading Course. Joseph James, SchoolOfTrade.com and United Business Servicing, Inc. are not registered investment or trading advisers. The services and content provided by SchoolOfTrade.com and United Business Servicing, Inc. are for educational purposes only, and should not be considered investment advice in any way. U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Futures and Options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 – These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or-over-compensated for the impact, if any, of certain market factors, such as liquidity. Simulated or hypothetical trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

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