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:
- Volume higher than average on the break bar (use the rectangle’s top as the resistance line)
- Wide range up bars approaching the c. zone
- 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