Accumulation/Distribution Breakout Strategy

Overview

About

The Accumulation/Distribution Breakout Strategy introduces a dynamic approach to trading by leveraging the sophisticated capabilities of Lune Technical Analysis Premium and Lune Oscillator Premium indicators. This strategy is designed to identify and capitalize on key market phases of accumulation and distribution, coupled with crucial signals such as oscillator-based confirmations. Aimed at traders of any market or timeframe, it offers a methodical way to enter high-quality trades by detecting early signs of market trends.

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: Accumulation Zone must be detected. Money and Liquidity Pulse must both be bullish. You can enter the trade when the price breaks out above the Accumulation Zone.

• Bearish Trades: Distribution Zone must be detected. Money and Liquidity Pulse must both be bearish. You can enter the trade when the price breaks out below the Distribution Zone.

Stop Loss

• Bullish Trades: Recent market low.

• Bearish Trades: Recent market high.

Exiting Trade

• Bullish Trades: You can exit the trade when Lune Oscillator Premium starts to indicate a Bearish Sentiment, such as the Lune Oscillator losing its momentum, or when a Market Peak is being displayed.

• Bearish Trades: You can exit the trade when Lune Oscillator Premium starts to indicate a Bullish Sentiment, such as the Lune Oscillator gaining its momentum, or when a Market Peak is being displayed.

Step-by-Step Walkthrough

Bullish Scenario - Example #1

Step 1

First, you want to wait for an Accumulation Zone to be detected. This is a bullish indicator.

Step 2

Then you want to look down at our Lune Oscillator Premium. Both Money Pulse and Liquidity Pulse need to be bullish. If they are not bullish then you should not take this trade.

Step 3

Once these conditions are met you can can enter a long trade when the price breaks above the Accumulation Zone. In this scenario, an Equal Low was also displayed which is an additional Bullish Confirmation. Our Stop Loss will be set at the most recent low.

Step 4

You can Take Profit when Lune Oscillator Premium starts to indicate a Bearish Sentiment, such as the Lune Oscillator losing its momentum, or when a Market Peak is being displayed.

Bearish Scenario - Example #2

Step 1

First, you want to wait for a Distribution Zone to be detected. This is a bearish indicator.

Step 2

Then you want to look down at our 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 then you should not take this trade.

Step 3

Once these conditions are met you can enter a short trade when the price breaks below the Distribution Zone. Our Stop Loss will be set at the most recent high.

Step 4

You can Take Profit when Lune Oscillator Premium starts to indicate a Bullish Sentiment, such as the Lune Oscillator gaining its momentum, or when a Market Peak is being displayed.

Conclusion

The Accumulation/Distribution Breakout Strategy stands out for its meticulous use of technical indicators to guide trading decisions, emphasizing the importance of confirmation signals for entry and exit points. By focusing on accumulation/distribution zones and oscillator readings, traders are equipped to make informed, data-driven trades. This strategy is a testament to the power of combining detailed market analysis with precision trading tools to enhance trading outcomes under varied market conditions.