Range, Breakout, and Rejection

Instrument: YM (Dow Jones Futures)

Session: NYC Morning

The session started in a range-bound environment leading up to the JOLTS Report. As expected, volatility surged after the release, creating both breakout and rejection opportunities for traders who remained patient and followed their plan. I focus on three setups—Range, Breakout, and Rejection—and today, we had all three.

Trade Breakdown

1) Range Bound Win 1

• Setup: Price was consolidating inside a defined range before the JOLTS release.

• Execution: A short trade taken at resistance as price failed to break out.

• Outcome: A clean move lower toward support, securing the first win of the session.

🚫 No Trades During JOLTS Release

• Why? Per my trading rules, I don’t take trades during high-impact economic data releases. News-driven volatility can be unpredictable, so I prefer to wait a couple minutes after the release before considering a setup.

2) Breakout Win 2

• Setup: Post-JOLTS, price broke below the range, confirming momentum.

• Execution: A pullback entry following the breakdown.

• Outcome: A strong continuation trade as price extended lower.

3) Rejection Win 3

• Setup: Price attempted a rally but rejected at resistance, creating another short opportunity.

• Execution: Stomp Trade confirmed a clear rejection level, signaling another downside move.

• Outcome: A straightforward short that followed trend continuation.

Final Thoughts

The Stomp Trade auto-range plot indicator provided clear structure in today’s price action. It helped confirm the breakout and rejection setups, making execution straightforward. The key to futures trading is having predefined rules and sticking to them—Stomp Trade keeps me focused on high-probability trades and range levels.

1) Patience & Discipline – No trades during high-impact data releases.

2) Key Level Confirmation – The indicator auto-plots the range for breakout and rejection areas in real-time so I can focus on my entry setup.

3) Execution Confidence – Trade entries aligned with structure, keeping trading systematic.

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