Introduction

Punchout, named in reference to price-action behavior that is characterized by agressive signs of buying which typically results in price “punching out of” a resistance block. Commonly called a “breakout” in chart-pattern analysis.

This strategy uses The Elliot Wave bar count simulation provided by ARmageddon and it looks like this

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The sequence for this setup is as follows:

1. Sell off first (we always aim to buy at discount), followed by a consolidation, where candles transition from being all-red to all-white and patches of green.

2. Signs of strong momentum from MSX and potentially sitting on one of the pivots shown by DSr,we look for price to transition from red/white to green.

3. Green candle must close above the 1.5 Fib levels

4. If the above criteria is met, we enter a trade. Pro-tip: There are profitable ways of entering a trade and then there are losing ways of entering a trade. Explaining this is considered an edge and beyond the scope of this public and free tutorial. It is recommended you join our community. By joining our community, you will learn from the best and remain on the winning side consistently.

5. Set a stop loss below 0.5 fib and take profit according to AR indicator signals or (click to learn more ) using of the many ways we teach our traders in our trade management live trading sessions.

Pretty simple right? It is! Consistency is key here. Trade little amounts daily so you can develop mental muscle memory with MarketSpy and get very comfortable with these strategies as they can be effortlessly recognized on any instrument!