Breakout Setups¶

Matt's Range Contraction Setup¶

Characteristics¶

• Pattern: Range contraction, Inside Day
• Key: Trade familiar names ("Know your dance partner")
• Exit: Quickly (before 1R if wrong)

Gap Criteria¶

• Respect premarket gap-up: 2-4% (not crazy ones)
• Doesn't focus heavily on ATR/ADR

Textbook Setup (EXEL Example)¶

1. Downtrend line with >3 touches
2. Reduced volume during consolidation
3. Break above trendline on increasing volume

Inside Day Breakout¶

Criteria¶

• Previous day's range is inside the day before
• Volume contracting
• Near key support/resistance
• Clear break above/below range

Entry¶

• Buy break above inside day high
• Stop below inside day low

Notes¶