Consolidation Breakout Signals .pdf - Content
A signal given to start a profitable breakout is comprised of two components - the Candlestick Signal and the Setup. Both need to be strong and clear enough to justify Consolidation Breakout Signals. If the Setup is weak, but the Candlestick Signal is strong or vice versa, the trade has a low probability of being successful.
Both should also be in sync with the type of Consolidation being traded. Some may be strong enough to be used for Normal Consolidations, but can be considered to be very weak to start breakouts on the Large and Medium Consolidations which need larger, more elaborate Setups and Signals.