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2017issue C097

Intraday breakouts planned from whole-number support and resistance

This archive case study plans an intraday long when a two-day high prints within $0.20 above a whole number, using a buy-stop at that offset, a stop-loss at the integer, and a target near $0.80 above it, short of the next whole-number resistance.

  • Intraday entries and exits are planned from whole-number support and resistance rather than from stacked discretionary signals.
  • A long is considered only when a two-day high prints within $0.20 above a whole number, which is the breakout confirmation used in the case study.
  • The order plan places a buy-stop $0.20 above the whole number and a stop-loss at that same integer, with the planned exit near $0.80 above it and short of the next whole-number resistance.
  • The scan looks for names in the $15 to $50 range and treats choppy names under $10, plus weak breakout signals, as conditions to avoid.
Entries in this reading3 entries
Stop-loss order144 readingsSupport and resistance170 readingsCurrent trackBreakout confirmation172 readings

Entries planned from whole numbers

The case study plans intraday entries and exits from whole-number support and resistance instead of from stacked discretionary signals. A whole number is an integer price level used as the reference for the entry offset, stop placement, and target.

The write-up pairs a momentum price-action breakout with a tight, predefined stop-loss distance.

The two-day-high long

The long setup requires a two-day high that occurs within $0.20 above a whole number. That two-day high is the highest print over the prior two sessions, and it is used as the breakout confirmation to attempt a long day trade.

Round integer prices serve as nearby support under the breakout and as the next resistance that frames the exit. The planned exit sits near $0.80 above the same whole number, short of the next whole-number resistance.

TWTR long planned on the $17 whole-number rail

The Twitter example pins one daytrade to a single integer: buy-stop at 17.20, initial stop on 17.00, a 17.80 target, and 18.00 as the next whole-number cap. Those prices are the ones the column states for this setup, so the bars show the 0.20 risk versus the 0.60 run that stops short of resistance.
The Twitter example pins one daytrade to a single integer: buy-stop at 17.20, initial stop on 17.00, a 17.80 target, and 18.00 as the next whole-number cap. Those prices are the ones the column states for this setup, so the bars show the 0.20 risk versus the 0.60 run that stops short of resistance.Twitter Inc. (TWTR) · Two-day 1-minute example · 2017-08-20T00:00:00.000Z to 2017-08-21T00:00:00.000Z

The 17.80 target is twenty cents below the next integer, matching the figure callout. One-minute candles on the screenshot were not sampled; the 20 August session is too compressed to read as discrete prints.

Buy-stop and stop-loss on the same integer

The illustrated order plan uses a buy-stop $0.20 above the whole number and an initial stop-loss at the whole number. The buy-stop is a resting buy that is intended to fill only after price trades that fixed offset above the whole number.

The stop-loss is a pre-placed protective exit at the whole number that bounds loss if the breakout fails immediately.

Scan range and names to avoid

The scan described looks for names in the $15 to $50 range. Choppy names under $10, plus weak breakout signals, are treated as conditions to avoid.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
16 of 20 in the Breakout confirmation track
201718-21 pp.Next on Breakout confirmationA fractal-dimension regime-gate for mechanical breakout entriesA fractal dimension near 1 is treated as a trend-like line, near 1.5 as random or Brownian, and nearer 2 as a more cyclic, space-filling path. The Hurst exponent converts to that label by D = 2 - H.
All readings on this track · 20 readings
  1. 1982Constructing a funnel from converging support and resistance
  2. 1990Bond trends as auction tests at prior highs
  3. 1995Constructing mechanical trendline breakout entries
  4. 2000Crowd balance points before a range-breakout
  5. 2000Breakout rules fail without tested exits
  6. 2002Waiting for setups instead of forcing trades
  7. 2003The 20-day channel high as a support test after breakout
  8. 2004Intermediate-term breakout rules and fifty-day exits
  9. 2004A three-check drill for support and resistance
  10. 2004Weekly exponential averages turn from breakout rails to resistance
  11. 2005Constructing a three-state moving-average breakout histogram
  12. 2005A three-state directional breakout on a moving-average midline
  13. 2005A range-market breakout watchlist with 50-day pullbacks and stops
  14. 2009Optimism bias, breakout adds, and predefined loss limits
  15. 2015Refuse mixed-horizon entries until the checklist locks one persona
  16. 2017Intraday breakouts planned from whole-number support and resistance
  17. 2017A fractal-dimension regime-gate for mechanical breakout entries
  18. 2018Trend-first FX walls stay a hypothesis until a second touch, RSI recross, or failed break
  19. 2019Constructing a sell-relative-strength-index from the intrabar range ratio
  20. 2020Decluttered charts for breakout, support, and stop rules
By fieldTrend and channels181 readingsBy year2017100 readings
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