BRACKET THE BREAKOUT

The day started with overlapping bars with an upward bias. B4 had a 2 point range, with a 1.25 pullback from it's high.  This activity is avoided.  There are higher probability trades, and we chose to wait at the open.  Had this continued, walk away and trade another day.

Our first opportunity came at b16.  Weakness was noted at the recent high, and a PB was developing.

We had CC with the 512, and considered that the PA would test the 200 level.



BRACKET THE MOVE:

Mid day saw a consolidation taking place in the PA.  Certainly, as frustrating as the open for many traders.  We choose to avoid the whipping action of overlapping bars, the AM, and we avoid the consolidation.  But the consolidation offers a hidden nugget that is valuable for traders.  Consolidations breakout.

The play was announced around bar 51: bracket the consolidation with a short at 1310.5 and a long at 1313.25.   The bracket should keep us out of the consolidating waves, and get us in the breakout.

bracket rules:

1. set bracket above/below the PA of the consolidation.
2. note the 50% level of the bracket.  If buyers enter at the bracket, the initial BO tends to fail and will try to retrace to the 50% level.
3. You can accept an entry at this mid level if it fails, or continue to monitor the original bracket.
4. Consider the mid point failure as a clue to the PA direction.
5. Note all perceived S/R in and near the bracket.

This bracket was very profitable for those that followed  the PA break of the bracket.