How to Trade a Break Out or Break Down with Disequilibrium Moves
LDM and Forecast LDM as Resistance, SDM and Forecast SDM as Support.

1. LDM and Forecast LDM as Resistance:
• When LDM and the Forecast LDM are aligned equally, they form a strong resistance level. This means that the price is likely to struggle to move above this level.
2. SDM and Forecast SDM as Support:
• Similarly, when SDM and the Forecast SDM are aligned equally, they create a strong support level. This indicates that the price is likely to find it difficult to drop below this level.
3. Side-by-Side Alignment and Breakout:
• If the LDM and Forecast LDM are aligned side by side, and the SDM and Forecast SDM are also aligned side by side, it suggests that the price is poised for a breakout. This breakout is likely to be an impulsive move, meaning it will be strong and significant.
4. Analyzing the Chart:
• Observe how the price interacts with these levels.
• Look for patterns or signals that indicate whether the price is likely to respect these levels as support or resistance, or if a breakout is imminent.
5. Trading Strategies
• Identify Potential Breakouts: When LDM and Forecast LDM are side by side, and SDM and Forecast SDM are also side by side, it indicates a potential breakout.
• Enter on Breakout: If the price breaks above the resistance level (LDM and Forecast LDM), consider entering a long position. If the price breaks below the support level (SDM and Forecast SDM), consider entering a short position.
6. Using Stop-Loss and Take-Profit
• Stop-Loss: Place your stop-loss orders just below the support level (for long positions) or just above the resistance level (for short positions) to minimize potential losses.
• Take-Profit: Set your take-profit levels based on the next significant support or resistance level or use a risk-reward ratio to determine your exit points.
Example Scenario
1. Setup: You identify the LDM at 150 and the SDM at 140. Your forecasted levels are 152 for LDM and 138 for SDM.
2. Range Trading: If the price drops to 138-140, you buy, expecting it to rise. If it rises to 150-152, you sell, expecting it to fall.
3. Breakout Trading: If the price breaks above 152 with strong volume, you enter a long position. If it breaks below 138, you enter a short position.