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| Action speeds up when price breaks out of congestion. Expanding bars or candles reflect surging momentum, regardless of time frame. By waiting for a pullback to enter the breakout trade, you get the opportunity to grab a very large piece of the total bar expansion. This concept becomes extremely important when planning your exit. Natural bias assumes the position should be held until momentum and price movement slow. But doing so exposes much of your profit to natural retracement. Instead, consider an exit when price bars expand into primary resistance. Use this strategy in conjunction with a central tendency tool, such as Bollinger Bands, and focus on high profit exit just as the market hits a wall. |
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