XAU --- Rules for trading the breakout
My rules for trading this simple breakout pattern.
1. At least 5 points of contact within the pattern.
2. A breakout out of the pattern. This creates what I call the "Breakout Point" which is formed at the low wick of the candle.
3. Regardless of what price does after, we must see a breakout past the "Breakout Point." Regardless if we get a retest or not.
Risk to Reward Ratio of at least 1:1
Risk 2-3% capital.
Happy Trading!
1. At least 5 points of contact within the pattern.
2. A breakout out of the pattern. This creates what I call the "Breakout Point" which is formed at the low wick of the candle.
3. Regardless of what price does after, we must see a breakout past the "Breakout Point." Regardless if we get a retest or not.
Risk to Reward Ratio of at least 1:1
Risk 2-3% capital.
Happy Trading!
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