Tuesday, January 17, 2012

Trading range BO vs fBO

When the price attempts to break out of a clear trading range (b1-17), there are a couple of things that will help us to determine if we should look for fBO trades or BP trades.

Strength in the breakout is likely to result in a BP. Weak BO attempts are likely to result in fBO.

Signs of strength are:

  • BO bar is shaved (either end, especially breakout end) (b7, b38)
  • BO bar has at least half the bar beyond the breakout point (b7)
  • The breakout attempt is a one-legged attempt (b5-b7, b35-b38)
  • Second attempt to BO (b38 after b15)

In addition an A2 (b54) is also likely to result in a breakout.


  1. Hi Cadaver,

    I have noticed you have been less aggressive recently. Are you trying to be 100% right on the entry? Please do not take this wrong. You are a very experienced trader. I just want to find out whether being more conservative is the way to go.

    1. I'm trying to limit my trading to the first two hours and this means I have to be a bit more conservative since any loss would force me to stay longer to try to end the day +ve.

  2. Hi Cadaver,

    fBO 5 is fBO of yesterdays high or small trading range 1-3? Can be bar 61 considered as a strong BO and second attempt (38 as a first after 15,16,17 low)? And if yes, is possible sell after 62 pause bar or is better wait for deeper BP?

    Could you tell me where in NT7 can I adjust that in a chart will be no gap after early close?

    Thank you very much!

    1. fBO of b1-3. b61 is a strong BO and b62 is a very good signal bar as long as its a small trend bar.

      I'm not sure how to make those changes to NT7. Looking for that info myself!

    2. Thank you very much for your reply.

      After several emails NT support told me that I am using multiseries chart so there will be always gap for the non trading hours.