This is a great post. I have a few questions about how you trade this strategy. Toni mentions that the wide range bar should break out of support. Do you look for this criteria too or just a wide range bar? If yes, what kind of support do you normally look out for?

2. What is your target for this type of trade?

3. Assuming that that your criteria have met, a wide range candle followed by a narrow one with a close near the close of the wide candle but there is a resistance above. WOuld you still enter the trade? (This is rather a silly qn :))

4. In the above example, the narrow range bar closed at $30.05, wide range bar closed at $30 the previous day. The high for the narrow range bar was $30.14 (historical data from google finance). At what price the next day will your entry be triggered?

A lot of questions I know but would appreciate your response.

Thanks,
Thomas