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Chart of the Day: Breakout Setup in DFS

Watch DFS in a breakout above resistance (roughly 34.45 – 34.75.) Resistance levels are usually not clear lines, but rather rough “zones” where selling pressure has previously been able to overcome buying pressure. Multiple tests of a level can often set up a good run above resistance, but entering these trades can be problematic due to volatility around the breakout itself. One solution is to enter partial positions on the actual breakout (perhaps confirmed on close here) and the remainder in the first consolidation above resistance.

AdamHGrimes

Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.
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