Forex and Futures Training
This video on TAS Boxes Breakout Trading shows you how to enter or exit trades using the breakout method. We use the High/Low value areas because these are the upper/lower levels of S&R. Once the market breaks through, we will look for long/short trades.
With the TAS Market Map alligator jaws formation, we are using the volume gaps in the market to find trades that will run. The high volume areas form when trading stagnates at a price point therefore acts as resistance and support (R&S). Between the two areas of resistance and support, there is a volume gap in the market, highlighted by Market Map.
Market Map creates a color coded version of Market Profile information. This gives you a clearer view of exactly where the trades were made therefore you identify key areas on your chart. Market Profile provides you with the exact price points where volume accumulates. This is more useful to us, as traders, than standard volume, because we use this to determine areas where they market may stagnate. With this strategy using Market Map’s Market Profile, we have two areas of market stagnation and the volume gap between them.
Why does the market break out of certain areas on the chart, and how can use these breakout trades? In this video, we analyze how to spot these levels of R&S and how to trade off of them.
High volume trade spikes happen when the market breaks levels of re enforced support and resistance. Active position stop loss levels trigger at this point causing a snowball effect. When you are trading these levels, be mindful of how quickly the market can move. These levels do act as barriers for the market to break, but when they are broken the market can run quickly. This is because they hold not only people who want to trade that direction in the market, but the people with stop losses in place. This causes a two fold increase in buying/selling.
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Bruce Banks