Trading Popgun Breakouts with Range-Based Entry and Exit Levels

Summary

The document describes a three-candle Popgun pattern: an inside candle is enclosed by two outside candles. It uses the direction of the second outside candle to choose long or short bias, then treats a break beyond that candle’s high or low within the next five candles as a potential entry. The indicator plots possible entry and exit levels as percentages of the second outside candle’s range, using 25% for entry and 75% for exit in the example. It also limits plotted signals to a specified time window and notes that the pattern requires three candles to form.

The discussion focuses on the difficulty of choosing targets, noting alternatives such as fixed points, price percentages, or trailing stops. The example is indicator logic for marking potential trade zones, not evidence of profitability; no backtest, win rate, or risk controls are supplied. The author presents the pattern as usable across markets and time frames, but does not establish that its parameters transfer reliably between them. Traders would need to test the breakout rule, target distances, and session window for each instrument and bar interval.

Key ideas

• A Popgun consists of an inside candle bounded by two outside candles.
• The second outside candle sets the directional bias, and a break of its range within five candles triggers the proposed setup.
• The example places entry and exit zones at 25% and 75% of the second outside candle’s range.
• Target selection is a central design choice, and the document supplies no performance or risk-control evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.