As I’ve often said, breakout setups are one of my favorite patterns to trade in the futures markets. They’re relatively easy to spot, and can point out markets ready to make a big move.
Below is the daily chart for Match Sugar. I circled the previous two sessions; both bars had breakout setups I look for. I added a trendline and a Fibonacci retracement to give you an idea for potential breakout sale points. Subscribers to my Trade or Fade Advisory had a downside breakout point at 23.17 (which turned out to be a Fibonacci retracement level as well).
Breakout setup is circled
Next is a 30 minute chart for March Sugar, covering the past two days’ trade. I drew horizontal lines at yesterday’s low of 23.27 and the 23.17 to indicate selling points. The break of yesterday’s low resulted in a move of $840 (to the low of the day) in 30 minutes.
Points to sell
For a detailed, step by step “how to” guide to recognize and trade these breakout setups, get my new ebook, The Breakout Futures Trading Method. For more information, and to get your copy, go here.
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