Close Proximity Bullish Breaker Entry Strategy

Jul 17, 2024

Close Proximity Bullish Breaker Entry Strategy

Overview

  • Objective: Capitalizing on the run on stops and entering within a specific candle.
  • Stop Loss: 55 pips
  • Take Profit: 114 pips

Key Concepts

Liquidity and Stop Runs

  • Liquidity Pools: Highs and lows where there is significant market activity.
  • Stop Runs: Manipulative moves to clear out liquidity by hitting stop orders.

Bullish Breaker

  • Bullish Breaker: Last up-close candle before a down move, retested as support.

Entry Strategy

  • Entry Point: Within a candle showing willingness to move above the highs.
  • Target: Clear liquidity above highs.

Pip Intervals for Monitoring

  • 10 pips Interval: Identify minor liquidty sweeps.
  • 20 pips Interval: Intermediate liquidity sweeps.
  • 30 pips Interval: Major liquidity sweeps.

Chart Observations

Euro Trading Analysis

  • Current Condition: Euro is housed within consolidation phase.
  • Liquidity Targets: Liquidity above the highs to be cleared.

British Pound (Cable) Observations

  • Weekly Prediction: Continued upside moves.
  • Hourly Chart: Liquidity cleared, continuation observed.

Dollar Index Analysis

  • Support and Resistance Areas:
    • Buy Side Imbalance (BSI)
    • Sell Side Inefficiency (SSI)
  • Range Observed: Multiple rejections at high, possible downside rebalancing.

Exercises for Tolerance Building

Intraday Price Analysis

  • Trading Range: Defined by high and low of reference candle.
  • Key Focus: Sensitivity and reaction to price within defined range.
  • Expected Results: Trade towards the bullish liquidity target within range.

Practical Steps

  • Buy Side Liquidity (BSL) Sweep: Real-time observation of price as it tackles highs.
  • General Execution: Enter trade within a breaker and wait for the price to act accordingly.

Risk Management and Context

General Approach

  • Stop Placement: Below the low of setup candle.
  • Risk Control: Manage risk without overleveraging.

Applying the Theory

Developing Confidence

  • Journaling & Review: Note entries and exits along with psychological state during the trade.
  • Building Consistency: Regular practice and reviewing outcomes.

Expected Outcomes

  • Measured Movements: Realistic price targets and entry tolerance to build mental fortitude.
  • Analyzing Risk: Understand and tolerate adverse market moves, knowing the parameters.

Final Thoughts

  • Market Control and Time Sensitivity: Knowing when to take profits based on time and market reaction.
  • Experience and Learning: Consistent practice and journaling to enhance skills.

Key Takeaways

  • Patience & Tolerance: Essential during trade execution and learning process.
  • Informed Decisions: Derived from contextual understanding rather than gut-feeling.
  • Mental Fortitude: Building resistance to emotional reactions from market movements.

Conclusion

Regular practice with the outlined exercises will build expertise and confidence in executing the described strategy. Always manage risk and stay aware of time-sensitive market behaviors. Happy trading!