Accumulation/Distribution Breakout Strategy

Overview

About

The Accumulation/Distribution Breakout Strategy employs the advanced features of Lune Technical Analysis Premium and Lune Oscillator Premium to identify and capitalize on market phases of accumulation and distribution. This strategy uses key indicators to detect early signs of market trends, offering traders of any market or timeframe a structured approach to entering high-quality trades.

Trading Style

• Day Trading

• Swing Trading

• Position Trading

Indicator(s) Required

• Lune Technical Analysis Premium

• Lune Oscillator Premium

Indicator Settings

• Lune Technical Analysis Premium

  • Accumulation/Distribution: Enabled

  • Show Equal Highs/Lows: Enabled

• Lune Oscillator Premium

  • Sensitivity: Mid

  • Velocity: Slow

  • Market Peak: Enabled | Sensitivity 1

  • Money Pulse: Enabled | Sensitivity 3

  • Liquidity Pulse: Enabled | Sensitivity 3

  • Reversal Radar: Enabled

How It Works

Entering Trade

• Bullish Trades: An Accumulation Zone must be detected. Both Money Pulse and Liquidity Pulse need to be bullish. Enter the trade when the price breaks out above the Accumulation Zone.

• Bearish Trades: An Distribution Zone must be detected. Both Money Pulse and Liquidity Pulse need to be bearish. Enter the trade when the price breaks out below the Distribution Zone.

Stop Loss

• Bullish Trades: Set the stop loss at the recent market low.

• Bearish Trades: Set the stop loss at the recent market high.

Exiting Trade

• Bullish Trades: Exit the trade when Lune Oscillator Premium indicates a bearish sentiment, such as losing momentum or displaying a Market Peak.

• Bearish Trades: Exit the trade when Lune Oscillator Premium indicates a bullish sentiment, such as gaining momentum or displaying a Market Peak.

Step-by-Step Walkthrough

Bullish Scenario - Example #1

Step 1

Wait for an Accumulation Zone to be detected. This is a bullish indicator.

Step 2

Check Lune Oscillator Premium. Both Money Pulse and Liquidity Pulse need to be bullish. If they are not bullish, do not take the trade.

Step 3

• Enter a long trade when the price breaks above the Accumulation Zone. In this scenario, an Equal Low was also displayed, providing additional bullish confirmation.

• Set the stop loss at the recent market low.

Step 4

Take profit when Lune Oscillator Premium indicates a bearish sentiment, such as losing momentum or displaying a Market Peak.

Bearish Scenario - Example #2

Step 1

Wait for a Distribution Zone to be detected. This is a bearish indicator.

Step 2

Check Lune Oscillator Premium. Both Money Pulse and Liquidity Pulse need to be bearish. In this scenario, they were not immediately bearish. If they are not bearish, do not take the trade.

Step 3

• Enter a short trade when the price breaks below the Distribution Zone.

• Set the stop loss at the recent market high.

Step 4

Take profit when Lune Oscillator Premium indicates a bullish sentiment, such as gaining momentum or displaying a Market Peak.

Conclusion

The Accumulation/Distribution Breakout Strategy excels in utilizing technical indicators to guide trading decisions, with a strong emphasis on confirmation signals for both entry and exit points. By focusing on accumulation/distribution zones and oscillator readings, traders are empowered to make informed, data-driven trades. This strategy highlights the effectiveness of combining detailed market analysis with precise trading tools to enhance trading outcomes across various market conditions.