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Lesson 5
Playbook 4: Range Compression Breakout
Learn to identify range compression (decreasing volatility before a big move) and trade the subsequent breakout.
Key Takeaways from this Lesson
- 1Range compression builds energy for an explosive breakout — do not trade during the compression.
- 2Bollinger Band width contraction to the 20th percentile quantifies compression.
- 3Measured move target = widest range height added to the breakout level.
- 4Only trade the breakout in the direction of the HTF bias for highest probability.
Lesson Quiz
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