When trading crude oil breakouts, it is important to
consider the underlying price support and resistance levels, The more
times a price has touched these areas, the more valid these levels are
and the more important they become, At the same time, the longer these
support and resistance levels have been in play, the better the outcome
when the price finally breakouts out.
Remember,
the goal here is to day trade breakouts. The greater the recent trading
range, the greater your odds are of being in a trade that has room to
move.
BREAKOUT is a
price movement through an identified level of support or resistance
which is usually 30-40 ticks followed buy heavy volume and increased volatility..