A BREACH TRADER'S JOB IS TO:

  1. Monitor Price Action and identify the market's Breach Points.
  2. When price begins be prepared to enable either Sweep, and/or Pressure, NinjaBots in the direction of the Breach Point.
  3. When a range bar opens that has the potential to go beyond the Breach Point by at least 1 tick, enable your NinjaBots.


Breach Points Defined - A Breach Point is a known price level that 'should' hold, such as:

  • Neckline
  • Double Bottom
  • Double Top
  • Right Shoulders
  • Recent Pivots that Have Evidence Of Conclusionary Order Flow
    • This Frequently Occurs in a Trend
    • These are Prices where 'they' recently tried to hold
    • This can be seen via Book Pressure and Sweep

NinjaBot Breach Examples

  • Double Bottom —> Enable Short NinjaBots
  • Double Top —> Enable Long NinjaBots
  • Neckline in an Upside Down Head & Shoulders Pattern —> Enable Long NinjaBots
  • Neckline in a Head & Shoulders Pattern —> Enable Short NinjaBots
  • Pivot High of Congestion —> Enable Long NinjaBots
  • Demand-Based Conclusionary Order Flow In an Up Trend
  • Supply-Based Conclusionary Order Flow In a Down Trend

IDEAL MARKET CONTEXT, PRICE ACTION, AND ORDER FLOW FOR DEPLOYING NINJABOTS INTO BREACHES

It is preferred that before deploying a NinjaBot, the setups are preceded by Conclusionary Order Flow.
 
  • Breaches of a neckline seem to have the:
    • Most consistent follow through
    • Longest excursion- This is due to the Elliott Wave principle where breaches of a neckline occur in a 3 wave. 3 Waves are the longest excursions in Elliott Wave theory.

Preferred NinjaBot Configuration for Breach Trading