Watch List #11: Trend Based Breakout/Breakdown Markets
Watch List #11 monitors markets that are poised to make breakouts to higher levels or breakdowns to lower levels, potentially in the direction of the prevailing trend. The trading premise is simple; markets that are in tight consolidation periods, eventually have to release their energy in an upward (breakout) or downward (breakdown) direction. Watch List #11 uses the current general trend for each market as a barometer to gauge the potential direction of the breakout/breakdown. It should be noted that these breakout/breakdown thrusts can run counter to the general trend. What’s most important is that any market listed, will make a move once its consolidation period ends. Focus markets, highlighted on the chart below, offer the best opportunities moving forward
Watch List #11 is divided into two main sections; Focus and Bias
- Focus: New markets (long or short) recently added to the Watch List which offer potential near-term trading opportunities.
- Bias: Existing markets (long or short) that have been on the Watch List for awhile and offer no new call to action.
Watch List #11 Trend Based Breakout/Breakdown Markets
Our watch list information is strictly provided for educational purposes only. As always … trade at your own risk and analysis.
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