Breakout Caution & Danger X's

Know when the breakout is over

What are the Yellow & Red X's?

In the Alpha Bundle you will receive the Premium version of the HTF Suites. In the Premium version you will have caution and danger X's that you can toggle on within your chart settings.

Signal	Definition
Yellow X's	Caution - The Breakout may be close to being over
Red X's	Danger - The Breakout is over

These X's signify that the first leg of the Squeeze Breakout that just occurred is either nearing or at an end. This does NOT mean that another leg cannot form in the same direction after a breathe. But it DOES signal that the initial move of the first leg is indeed over or close to being over.

Some trader may use these signals to de-risk, meaning they may take off their position and close their squeeze breakout trade in profit that they have. Others may take half their position and close it while letting the rest ride with a stop loss.

Additionally. these x signals can be helpful in certain situations such as a "dead cat bounce". This phenomenon is often characterized after support is broken. When the price of the asset breaks support, the price falls and reaches the next support. The price has a small bounce until falling back to support signaling continuation of the downtrend.

In closing the HTF Yellow & Red X breakout warnings are intended to be used as a guideline for beginner traders to help them manage Squeeze Breakouts & to ensure proper risk management is being taken on the trade.

Example

Below are examples of our Warning signals ensuring proper risk management for the beginning trader on Squeeze breakouts. The first example will show how the X's can keep the trade in profit after executing a successful Squeeze Breakout entry.

Example of a successful profitable trade because of risk management from the Warning X's.

The second example below illustrates how Warning X's can keep you out of a bad trade. Hence this breakout actually became a Squeeze Fakeout after the "Reversal bar" was printed after a breakout. You can read more about these Squeeze Fakeouts in the next chapter.

Note: Caution & Danger X's are only on the Premium HTF Suite. They are not on the LTF Suite.