“Day Breaker’s goal is to capitalize on the market’s success or failure moving outside the zone” Future’s Truth Magazine has our Day Breaker strategy up 65% in the last 12 months!
One of the most basic and primary rules of Technical Analysis is the rule of support and resistance. This rule is grounded in the psychology of the markets.
Here is the basic rational:
If the market rallies from a low of 200 up to 220 and then trades back to 200, traders who missed buying at 200 and the subsequent 10% move will buy at that price since they regret missing the first low at 200. If the market rallies again to 220 followed by a decline back to 200, traders who missed the last two lows will provide buying support at 200 for a run back to 220. If the market rallies again to 220 and then falls to 200, there will be a “crowd” of traders buying again at 200. Hence you have witnessed one way that support is developed.
But what if on the test, the pull back, to 200 do not finds enough support, prices continue to decline below 200 to 190, now the “crowd” of traders who bought at 200 will regret it and would be happy if they could “just break even” back at 200. Hence, the support zone of 200 has now become resistance, as these traders will be sellers to break even.
This is one of the First and Most Primary Rules of Trading! Once Support is Broken, it becomes Resistance and once Resistance is Broken, it becomes Support
In this simple example, we have a crowd of traders that will be selling just to get out at breakeven, if the market gets
back to 200. The same holds true for chart patterns like double or triple tops. Once resistance at these highs is broken it becomes your new support level. So while the majority only looks at the chart triple tops as resistance or head and shoulders’ bottom as support, the learned trader looks at these tops and bottoms as a zone or area and that when they are broken through they will provide opposition to a fees price move through that price area as the rule states.
%C-Day Breaker has the ability to project daily where the intraday support and resistance levels should naturally occur for a day trader. It uses the previous day’s range to makes projections based on the Fibonacci sequence of numbers. The strategy uses these daily support and resistance zones as set before entry. The notion of success or failure then come into play with the placement of entry buys and sells stops.
So you are clear here support and resistance is not a single price level it is a zone or an area. That makes the DayBreaker’s approach plus its use of the concept of success or failure to move out of the zone. Day Breaker’s goal is to capitalize on the market’s success or failure at moving outside the zone. Once price is in the day trader’s zone, two orders are caused one long stop and one short stop.
Based on a few simple rules around support and resistance, %C Day Breaker is ranked #7 all time S&P day traders since 2004 via Futures Truth
Developers and traders be aware that from a basic system like Day Breaker the application of modern day filters (conveniences) and modular know how, will push Day Breaker back into the top ten when compared to all the strategies followed by FT and in the most recent 12 month annualized returns.
Priced at $4,995.00; with your TMT membership 50% discount at $2,495.00. Ask about portfolio discounts.