Consolidation Breakout/Breakdown Tactic

Discussion in 'Trading' started by NoDoji, Feb 20, 2009.

  1. NoDoji


    I'm interested in feedback from anyone who places orders on both sides of a price consolidation. For example, say a stock is in midday consolidation between 19.90 - 20.10. You place a buy order just above the high of the range, and a short order just below the low, then go with the trade that gets filled, assuming that a breakout or breakdown from consolidation should provide a strong move.

    Do you find this strategy profitable?

    How close to the high and low do you place your orders?