EURUSD 1D KnowSureThing (KST) BREAKOUT STRATEGY
Step #1 Identify a Ranging Zone
Regardless of the time frame used, we define a ranging zone as comprised of two equal highs and two equal lows.
Well, the lows and highs don’t need to be equal.
But, the closer they are, the more defined our trading range would be.
And, the more defined our range is, the higher the chance of a breakout and subsequently to experience a momentum burst.
Once the range is established, we wait for the breakout to generate that momentum burst.
Breakout trading is like trading momentum on the back of your trade.
Step #2 Wait for a Break of the Range
This is self-explanatory!
A range breakout is an explosive move outside the trading range.
In the example given, we can notice a clear breakout that holds above the range resistance level.
This is a breakout of resistance.
We can avoid false breakouts, which means the momentum is drying out pretty fast after the initial breakout. We simply use the Know Sure Thing indicator to track the momentum activity.
Step #3 Check the Momentum Reading on KST oscillator
Once the market breaks out of an equilibrium point, we want to make sure there is enough juice aka momentum for the price to follow through. How much juice the EURUSD has can be observed on the Know Sure Thing oscillator.
Using the KST oscillator, we can avoid false breakouts like a Hedge Fund manager.
We can observe a buildup in momentum as the Know Sure Thing lines are holding above the zero line.
Once momentum is set in motion, a trend is more likely to continue than to reverse. And, once a trend is established and going in full motion it will take a sizeable force to turn the tide around.
Follow your Trade Plan to find your own SL & TP.
Regardless of the time frame used, we define a ranging zone as comprised of two equal highs and two equal lows.
Well, the lows and highs don’t need to be equal.
But, the closer they are, the more defined our trading range would be.
And, the more defined our range is, the higher the chance of a breakout and subsequently to experience a momentum burst.
Once the range is established, we wait for the breakout to generate that momentum burst.
Breakout trading is like trading momentum on the back of your trade.
Step #2 Wait for a Break of the Range
This is self-explanatory!
A range breakout is an explosive move outside the trading range.
In the example given, we can notice a clear breakout that holds above the range resistance level.
This is a breakout of resistance.
We can avoid false breakouts, which means the momentum is drying out pretty fast after the initial breakout. We simply use the Know Sure Thing indicator to track the momentum activity.
Step #3 Check the Momentum Reading on KST oscillator
Once the market breaks out of an equilibrium point, we want to make sure there is enough juice aka momentum for the price to follow through. How much juice the EURUSD has can be observed on the Know Sure Thing oscillator.
Using the KST oscillator, we can avoid false breakouts like a Hedge Fund manager.
We can observe a buildup in momentum as the Know Sure Thing lines are holding above the zero line.
Once momentum is set in motion, a trend is more likely to continue than to reverse. And, once a trend is established and going in full motion it will take a sizeable force to turn the tide around.
Follow your Trade Plan to find your own SL & TP.
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