| Hey traders! This week, I want to focus on one of the most explosive trading opportunities in the market – range breakouts. The recent WTI crude oil chart provides us with a perfect example of how these setups can deliver massive returns when traded correctly. The Power of Range TradingRanges form when price gets trapped between clear support and resistance levels, creating a horizontal corridor. During these periods, buyers and sellers are in equilibrium, but energy is building like a coiled spring waiting to be released. When price finally breaks out of these ranges, the moves can be explosive because all the trapped traders suddenly find themselves on the wrong side of the market. WTI's Spectacular Range BreakoutLooking at the WTI chart, we can see a beautiful example of this pattern in action. For several days, crude oil was locked in a tight range between approximately $62.00 (support) and $63.20 (resistance), marked by the rectangular boxes on the chart. The compression was building, with multiple tests of both boundaries showing the market's indecision. Then came the moment we've all been waiting for – a decisive breakout above the $63.20 resistance level. What followed was nothing short of spectacular. Price didn't just break out – it exploded higher, shooting from $63.20 to nearly $64.00 in rapid succession. This is exactly what we want to see in a range breakout: conviction and follow-through. My Range Breakout StrategyWhen I trade these WTI setups, I follow these principles: - Identify clear horizontal ranges with multiple touches of both boundaries
- Look for decreasing volatility within the range (compression)
- Watch for volume expansion on the breakout attempt
- Enter immediately on the breakout with stops back inside the range
- Target at least the height of the range projected from the breakout point
- Trail stops to capture extended moves
The key is patience during the range formation and quick action when the breakout occurs. Reading the Current SetupNotice how the green trend power indicators in the top right corner have all turned bullish, confirming the breakout's validity. This alignment of momentum, trend, and profit power suggests this move has legs. The breakout from the $62.00-$63.20 range projects a target of at least $64.20, which we've already achieved. However, with this kind of momentum, further upside toward $65.00+ becomes realistic. Current WTI OutlookWith the successful range breakout now confirmed, WTI appears to be in the early stages of a potential larger move higher. The $63.20 level should now act as support on any pullbacks. If we do see a retest of the breakout level around $63.20, it could provide another excellent buying opportunity for those who missed the initial move. However, any close back inside the range would invalidate the breakout signal. Remember, the best range breakouts happen after extended periods of consolidation, just like what we saw in WTI. The longer the range, the more explosive the eventual breakout tends to be. Want to catch explosive trades right at the open? I use the Morning Power Hour Indicator to spot high-momentum setups at exactly 9:30 AM—think TSLA, AAPL, NVDA and more. It’s fast, clean, and insanely effective. And there’s a 48-hour 50% OFF FLASH SALE live right now—jump in before it’s gone. THIS OFFER ENDS TODAY! CLICK HERE TO GAIN ACCESS Until next time, watch for those tight ranges – they're often the calm before the storm! Trade smart, TradingStrategyGuides | 
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