The False Breakout / Rubber Band Day and Swing Trading Strategy

This high probability day trading system capitalizes on the counter trend that follows a false breakout and does great in the difficult modern markets.

The Rubber Band Day and Swing Trading Strategy

We are looking to take advantage of the situation that develops when position stops accumulate at a certain level, get taken out, and run out of steam – resulting in a failed pattern and a price reversal.  A supply and demand imbalance develops from the “burned” participants who were stopped into a position (started from the other group who were stopped out of positions). When price penetrates such a level only briefly and the market quickly snaps back and reverses, positions that were taken in the direction of the breakout will continue painfully hitting their stops as price goes against them – this action often causes a sharp and reliable counter trend that is fairly easy to trade.

Day and Swing Trade Set-Ups and Trading Rules