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.
Why use TAS Boxes breakout trading method?
When the market pushes through a key level of support and resistance, that level now acts as a new barrier for the market to retrace through. We take advantage of this by using a stop loss outside of the value area making the market have to push through a large area of support and resistance before it goes against our trade.
Key terms for TAS Boxes?
The HVA is the high red value area line. It is the upper band of support and resistance in the market.
The LVA is the Green Low value area line. This is the lower band of support and resistance in the market.
The POC is the point of control blue line. This is where a majority of trades happened in the look-back period for the TAS Box.
Why do we use TAS Market Profile levels for support and resistance?
TAS boxes is based off of Market Profile information. Market Profile shows you where there is an accumulation of buyers and sellers at a certain price. TAS Boxes takes this, and gives you three levels, all based off of market profile. We choose to use Market Profile because this is based off of actual trades made. Traders, at market profile shown levels, actually had transactions at these levels, and have accumulated volume at these levels. This is using real market information to show you how traders react to it.
Want to find out more about TAS Market Profile?
Check out trader’s anatomy where they do free market analysis videos.