{"id":202102,"date":"2025-02-06T15:36:56","date_gmt":"2025-02-06T20:36:56","guid":{"rendered":"https:\/\/ibkrcampus.eu\/campus\/trading-lessons\/developing-a-trading-plan-with-interactive-brokers\/"},"modified":"2025-02-10T19:10:31","modified_gmt":"2025-02-10T19:10:31","slug":"developing-a-trading-plan-with-interactive-brokers","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.eu\/campus\/trading-lessons\/developing-a-trading-plan-with-interactive-brokers\/","title":{"rendered":"Developing a Trading Plan with Interactive Brokers"},"content":{"rendered":"\n

Hey everyone, welcome back to our Point & Figure chart series here at Interactive Brokers. Last time, we looked at how to trade trend reversals and pullbacks using these charts. Now we\u2019re digging into breakouts and those classic patterns\u2014like the bull (or bear) flag\u2014but applying them to Point & Figure so we can filter out the usual noise.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/a>Ascending Triangle Example<\/h3>\n\n\n\n

We used Tesla as a case in point. It kept hitting around $260, forming a clear resistance zone. Normally you\u2019d see that on a candlestick chart too, but in Point & Figure, it\u2019s especially clear how buyers keep stepping in at higher prices\u2014a big clue you might have an ascending triangle on your hands. Instead of guessing when that breakout could happen, you can just wait for, say, three or four X\u2019s above that resistance level to confirm it.<\/p>\n\n\n\n


You don\u2019t have to worry about timing. If it takes a day or a month for those X\u2019s to print up there, you stay patient and only jump in when the price actually breaks out.<\/p>\n\n\n\n

<\/a>Compression & Breakouts in Apple<\/h3>\n\n\n\n

Then we zoomed in on Apple to show how a period of compression (or lower volatility) can lead to a breakout. You had a big run of X\u2019s, a pullback of O\u2019s, and then each subsequent column keeps getting smaller and smaller, hinting volatility is tightening. In traditional charting, you might see this as a wedge or triangle. Here, you just ignore all the intraday noise and wait for the next meaningful price move\u2014no matter how long that takes.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/a>Why It Matters<\/h3>\n\n\n\n

The real advantage of using Point & Figure is that it gets you out of dead zones. If Apple or Tesla spend weeks or months just chopping around, you won\u2019t get tricked into a bunch of false moves because the chart won\u2019t even update until price hits your chosen box size. That means less stress and more clarity on where the real breakouts might occur.<\/p>\n\n\n\n

So, if you\u2019re a breakout trader\u2014or someone who just wants a more streamlined look at those classic patterns like ascending triangles, bull flags, or wedges\u2014Point & Figure can be a game-changer. It\u2019s all about focusing on actual price moves and ignoring the rest.<\/p>\n\n\n\n

<\/p>\n\n\n\n

That\u2019s it for this lesson on breakouts. Stay tuned for more Point & Figure insights right here at Interactive Brokers!<\/p>\n\n\n\n

<\/p>\n\n\n\n

Contributor<\/h3>\n\n\n\n

Michael Nauss, CMT<\/p>\n\n\n\n

Substack:  <\/p>\n\n\n\n

Site:  www.statsedgetrading.com<\/a> <\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Creating Your Trading Strategy
\nIntegrating point and figure charting into your overall plan.
\nCombining Indicators
\nBrief introduction to using additional tools like moving averages on TWS.
\nPortfolio Diversification
\nApplying point and figure charts to different assets (stocks, ETFs, commodities).
\nLeveraging Interactive Brokers’ Resources
\nAccessing educational materials and support services offered by Interactive Brokers.<\/p>\n","protected":false},"author":1087,"featured_media":202103,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":true,"footnotes":""},"contributors-categories":[2619],"traders-academy":[100,103,89,105],"class_list":{"0":"post-202102","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-stats-edge-trading","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-stocks","10":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nArchives | Traders' Academy | IBKR Campus<\/title>\n<meta name=\"description\" content=\"Integrating point and figure charting into your overall plan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/trading-lessons\/202102\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Developing a Trading Plan with Interactive Brokers\" \/>\n<meta property=\"og:description\" content=\"Integrating point and figure charting into your overall plan.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.eu\/campus\/trading-lessons\/developing-a-trading-plan-with-interactive-brokers\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus EU\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-10T19:10:31+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.interactivebrokers.eu\/campus\/wp-content\/uploads\/sites\/3\/2025\/02\/pof5.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t \"@context\": \"https:\\\/\\\/schema.org\",\n\t \"@graph\": [\n\t {\n\t \"@type\": \"WebPage\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/trading-lessons\\\/developing-a-trading-plan-with-interactive-brokers\\\/\",\n\t \"url\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/trading-lessons\\\/developing-a-trading-plan-with-interactive-brokers\\\/\",\n\t \"name\": \"Developing a Trading Plan with Interactive Brokers - 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