We are pattern traders on all time frames and all instruments. Then we overlay the other concepts that make up our technical approach, which is called the Master Trader Method (MTM), in analyzing the quality of the Setup.
Breakouts are one of our tradable patterns; however, they can be treacherous if you don’t know what to look for since many fail.
At Master Trader, we have several criteria to define quality setups based on the structure of the price pattern using Master Trader Strategies (MTS), which we will discuss in the video.
In trading Breakouts, we look for bullish price action at major resistance prior to breaking out, or buying a pullback and reversal at minor support after the Breakout.
With all Breakouts and other Setups, we need a Price Void (insignificant resistance to the left for longs).
We’re going to show you a compelling Breakout which had bullish price action on Multiple Time frames (MTF), which increases the bullish bias of the setup.
When MTF are aligned like with the Communication Services Select Sector SPDR Fund (XLC), the odds increase dramatically for pattern success.
We gave this trade the subscribers of the ETF Investment Trader, which seeks larger gains with compelling patterns like XLC on larger time frames.
Management updates are sent intra-day by text message to subscribers.
Depending on your trade management methodology, you booked a quick gain or are simply prior week’s lows as it approaches resistance.
Nice trade!
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