Monday, April 1, 2013

How do you buy into a ZB breakout?

This morning's ZB breakout when the ISM report came out at 7 am was cool. ZB opened the 7 am bar at 144 '18 and shot up to 145. It then pulled back a little, and then chopped around near the highs all day in a 3-4 tick range.

So how would one buy into this kind of move? I watched a trading video where the speaker said buy an 8 tick pullback, but that seems arbitrary. How about buying the 61.8% pullback of the move, since that level works so well on ZB?

Below is the chart of how it would have worked today.

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