Teaching method

The DataStream confirmation sequence

Every program we teach follows the same four-stage process. This page summarises what students practise in the workshop — a reference you can read before enrolling.

Hand-drawn support and resistance lines on a printed candlestick chart

Breakout trading fails most often at the level-selection stage, not the entry button. Our method separates marking from confirming from entering. Each stage has explicit pass/fail criteria so you can journal decisions without hindsight bias.

  1. Mark the level

    Identify a horizontal boundary with at least two prior touches that rejected price. Draw one line — not a zone wider than half the average daily range. If you cannot explain why this level matters in one sentence, it is not ready for a break watch.

  2. Wait for the close

    A wick through resistance is not a break. The candle must close beyond the level on the timeframe you intend to trade. For daily charts, that means the 17:00 VN time close; for four-hour charts, wait for the period end. Intraday pierces without close are logged as "unconfirmed" in your journal.

  3. Check volume at the break

    Compare break-candle volume to the five-period average on the same timeframe. Expansion supports genuine participation; flat or declining volume on a large-range candle is a yellow flag. We teach relative comparison, not fixed thresholds, because instruments differ.

  4. Assess the retest

    After a confirmed close, watch for price to return to the broken level. Acceptance means the level holds as support (for upside breaks) on reduced volume. Entry on retest with a stop below the retest low is our preferred path; chasing the break candle is discouraged in the workshop.

False-break filters we pair with the sequence

Before stage two, run a quick false-break screen: wick greater than sixty percent of total candle range, prior rejection count at the level three or more, and break occurring in the first thirty minutes of a session (common liquidity sweep window for FX). Two or more flags suggest standing aside even if price looks compelling.

How this appears in our programs

The Breakout Confirmation Workshop devotes a full day to stages one and two, then day two to stages three and four with live exercises. The False-Break Filter Masterclass expands the screening rules above. Private Chart Reviews apply the full sequence to charts you submit.

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