Trading Congestion Zones Breakouts

For prices to break a supply zone, there should be renewed demand and generally strong action. This puts us in a good spot to take a long trade, provided that there are confirming signs along with the breakout.


In this setup, look for:

  1. Volume higher than average on the break bar (use the rectangle’s top as the resistance line)
  2. Wide range up bars approaching the c. zone
  3. No stalling action near the c. zone


Stop-loss: Set the stop-loss at the red dot.
Take-profit: Set the take-profit at the green dot.
Move stop-loss: When price reaches the blue dot (the indicator will automatically alert you), the stop-loss should be moved to break-even to protect profits


breakout1 breakout2 breakout3 breakout4