I'll take this trade one step at a time. The market opened lower, tested its uptrend line, and then moved up to take out yesterday's high at 7935, by 1 tick.

Since I do not trade bounces from uptrend lines, I waited for some kind of congestion to form. If the market were to keep on going and not congest in the area of yesterday's close, I would let that go by. I want it my way or not at all. I don't mind missing a big move if it's not my move.

The market then retraced from the new high at 7936 to form somewhat of an AA formation. I figured this might be as close as I was going to get to my desired congestion, and so I entered an order to buy a breakout of yesterday's high. I was filled at 7936.

When the market started trading at 7944,1 put in a market order and got filled at 7946 - which was the next high. I now had ten points in the trade, and so I moved my remaining two contract sets to breakeven at 7936 and was stopped out there.

Subsequently, prices made a true congestion by moving down into the area of yesterday's close. I've marked that boxed off area for easier viewing, on the chart that follows.

wVvv breakout breakout



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