This is a text book example of a trade and a linked post on how to find days when this trade is likely to occur:
The indicators used here are:
MTORLevelsSig - is the indicator that draws the trade signal to enter long or short
MTAutoFibGrid - is the indicator that plots the fib extensions from the session open - for use as targets and Exits
MTRangeGrid- Shows us when the market has hit 50,75,100,125,150 and 161.8% of its expected range
More details of the indicators used here are available from Chart > Indicators > MarketPlace > MicroTrends
or from here http://www.indicatorfactory.com
In the linked post I provided some price analysis on how to guage when this type of breakout will occur.
Essentially we hit 100% of the market range 25% of the time - but it does not take off from the open 25% of the time and not look back....! So our system needs to be selective - needs to minimise trading, needs to understand the compromise of trading... needs to allow us to stay in for the fat tail trending days and weeks....
Trade Plan Day Trading Rules
Entry = CrossAbove MTOpenRange Trigger Line
+ HTF Price analysis to pick day/condition
Position Size: Long 16,8,4,2,1 = 31,000
Inverse Pyramid Example
Targets= F23% 16 , f50% 8 , f76% 4, f100% 2- + run one
Technical Exits =
Crossabove 50% and Close Back below
Scale out 1st Bracket
Crossabove 76% and Close Back below
Scale out 2nd Bracket
Crossabove 100% and Close Back below
Scale out 3rd Bracket
With Exits you could for example use a trend reversal
or MA Cross at those regions
at 23% Trail to f0% - 10 ticks
at 50% Trail to f23% - 10 ticks
at 76% Trail to f50% - 10 ticks
at 100% Trail to f76% - 10 ticks
E.G we are trailing by more than one grid height
FACT: This is a text book trade
This wont and cannot happen every day...
The Market will hit 100% of its typical projected range 25% of the time....
So we need a plan to limit the amount of trades per day/week....
We need a nuance or filter technique to trade with high probability - see related post