Short instructional excerpt on using breakout entries after price pullbacks and consolidation. Speaker explains conditions for a valid breakout entry: consolidation or ascending formation requiring at least two highs and two lows, placing stop-loss below the most recent low, and targeting a 2:1 reward-to-risk. Recommends traders focus on one of the two entry types described.
If price starts to come back down, but not make it all the way back down to the moving average and starts to consolidate, then you can look for a breakout entry. Now, the breakout entry, I'm needing two highs either as a minimum and two lows, or I'm needing two highs and two lows as an ascending. So either neutral, consolidation, ascending and then you do the same process. Here you go. Stop bus below the most recent low and then you're looking for another two to one scenario. I would suggest to anyone listening that they go and focus on one of those two entries.
