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Range Breakout: Get In with a Buy Stop

Price has been moving sideways in a narrow range for a long time, and volume keeps shrinking. Breakouts often come suddenly. You can't watch the screen all day, so set up your order in advance.

Goal

Place a Buy Stop at the top of the range so you buy automatically when price breaks out, and protect yourself with a stop-loss.

  • Enter with a Buy Stop and close the trade at a profit
  • Every position has a stop-loss
  • No stop-out
Rules

Risk warning: forex, CFDs, options, futures and crypto assets usually involve leverage or high volatility, and you can lose more than you put in. This lesson only teaches the concepts; all numbers are for illustration and are not investment advice.

Range Breakout: Get In with a Buy Stop · Trading practice · 72lab