This is How to Trade a Trend Line Breakout

Posted by TopstepTrader on June 04, 2018

Since making new, all-time highs in January and then crashing 10% in February, the E-Mini S&P has consolidated. As the chart below indicates, it put in lower highs in March and April, but each lower high was also accompanied by a higher low. 

EMini S&P Consolidation

To anyone looking at the daily candlestick chart (shown above) the market was clearly gearing up for its next move. In this episode of The Trade, Coaches Dan Hodgman and John Hoagland revisit the breakout as prices approached that descending trend line on May 7, 8 and 9.

They talk about how they analyzed the market at the time, why it may have been more natural to take a short position as the market approached that line (with a stop above), and why the E-Mini typically doesn't confirm breakouts higher with high volume. 


Are you tired of risking your money in the markets? Trade ours!

Start Trading


< Back to Blog

Topics: Performance Coaching, Trading Basics, Futures, Trading Setups, The Trade, E-Mini S&P