More on the 15 minute rule,

A few days ago, Solo asked:

“Would you please explain what is that 15 min. rule exactly?”

1. What should be the price and volume action which we should look out for in this trade?

My Notes: There is a 15 minute range. Thus, there is a high point in the range and a low point. An ideal condition for buying will be for prices to remain close to the high point for the past few minutes, making some kind of a consolidation. When prices breakout from the high of the 15 minutes, we will also have a breakout from this consolidation. This is better than one breakout. The reverse is true for breakdowns. Volume should exhibit similar action, increasing near resistance and falling near support (for a bullish breakout). Now, all of this defines an ideal condition, but real life is different.

2. Can we predict some target for this trade?

My Notes: We should not try to predict what the market will do. Instead, we can say, this is what I, the trader will do. So, an up breakout should move up by the same amount of points as the 15 minute range (high – low). The trader can plan to take partial profits at this level. A lot of innovation can be done with levels, R1, R2, prior resistance and support.

3. Where should we keep our stoploss?

My Notes: On the other side of the range. If you go long, the stop should be just below the low. As the trade moves in your favor, move the stop to the mid point of the 15 miute range. Again, you can do a lot of experiments with stops & exits.

4. Shall we trail in this setup?
My Notes: My research suggests that you try to have a break even trade after you see the trade move in your favor. But, beyond break even, let the market decide what it wants to reward you with