Range Breakouts
Consolidation to breakout case studies.
Breakout 1: Narrow Range Break
Structure
Pattern: Narrow range
Time: 2 days
Range: 50 pips
Setup
Range: 1.0850-1.0900
Break: Upward
Volume: High
Confirmation: Close above
Outcome
Entry: 1.0905
Result: +100 pips (WIN)
Analysis
Why it worked:
- Narrow range = energy
- High volume confirms
- Break above close
- Follow-through
Lesson
Narrow ranges = strong breakouts.
Volume = confirms.
Confirm close.
Breakout 2: Wide Range Break
Structure
Pattern: Wide range
Time: 5 days
Range: 150 pips
Setup
Range: 1.0500-1.0650
Break: Downward
Volume: Low
Outcome
Entry: 1.0500 (break)
Result: -30 pips, false break (LOSS)
Analysis
Why it failed:
- Wide range = weaker break
- No volume
- No follow-through
Lesson
Wide ranges = weaker breakouts.
Low volume = likely false.
Wait for confirmation.
Breakout 3: Multiple Range Tests
Structure
Pattern: Range tested
Tests: 3 touches
Setup
Range: Tested 3 times
Last test: Weak rejection
Break: Fourth test breaks
Outcome
Break: Strong up
Result: +80 pips (WIN)
Analysis
Why it worked:
- Multiple tests weaken support
- Fourth test = exhaustion
- Break = real
Lesson
Multiple tests weaken ranges.
Watch fourth tests.
Breakout = high prob.
Breakout 4: Failed Range
Structure
Pattern: Range break false
Setup
Range: 200 pips wide
Break: Above resistance
Confirmation: Before close back
Outcome
Entry: Above resistance
Result: Stop hit, -50 pips (LOSS)
Analysis
Why it failed:
- Too wide = no energy
- Did not wait confirmed
- Entry before break
Lesson
Wide ranges = fail.
Wait for close confirmation.
Don't anticipate.
Key Takeaways
- Narrow = strong — Energy builds
- Volume confirms — Check it
- Confirm close — Wait for it
- Multiple tests — Breakout on test
Related
Trade breakouts carefully.