Elastic Envelope Breakout Strategy — Step-by-Step Guide & Transcript

[00:01] already moved. Stop entering trades right before the market reverses on you. Instead, start trading the power breakout. Welcome back to SAM Trading Strategies. In our last video, the Aroon flip went viral because it showed you

[00:14] how to catch momentum. Today, I'm showing you a strategy for when the market goes into overdrive. I call this the elastic envelope breakout. We are using a specific tight band setting on a 15-second chart to catch the exact

[00:27] second the price explodes out of its range. If you want to see how to catch Pocket Option, watch this video until the very last second. Let's dive in. remember that trading involves risk. This strategy is for educational

[00:42] purposes. Never trade money you can't afford to lose. Let's build the engine. Open your pocket option chart. Candles 15 seconds. Expiry 1 minute. Go to your indicator tab and select envelopes. Change the period to 14. Change the

[00:56] deviation to 0.1%. Make the lines bright. These are the boundaries the price is about to break. Next, add the Williams R. We are using period 14 with levels minus 20 and minus 80. This is our momentum confirmation.

[01:12] Why 0.1% deviation? Most traders use wide bands deviation? Most traders use wide bands to find reversals, but at 0.1% we are looking for a breakout. When the price closes fully outside these tight bands,

[01:24] it's like a spring being released. By combining this with the Williams percent R, we ensure we only enter when the buyers or sellers have 100% control of the market. Here are the rules for the elastic envelope breakout. Write these

[01:38] down. To take a buy trade, the breakout look for a candle where the entire body closes fully above the upper envelope line. If even a tiny bit of the wick is touching the line, we skip it. The confirmation, check the Williams percent

[01:52] R. It must be above minus20. This confirms the buyers have enough power to keep pushing the price higher. The entry as soon as that candle closes, enter a one minute trade up on the open of the next candle. to take a sell trade. The

[02:06] breakout. Look for a candle where the entire body closes fully below the lower envelope line. Again, no wicks touching the confirmation. Check the Williams percent R. It must be below minus 80. This confirms the sellers have hijacked

[02:21] the momentum. The entry, enter a 1 minute trade down on the open of the next candle. To help you remember these rules, I've created a free step-by-step checklist PDF in my Telegram channel, link in the description. But wait, there

[02:36] is one hidden trap. Sometimes the price breaks out and then immediately hits a major support or resistance level. If you don't check for this, you will lose the trade. I'm going to show you three live trades right now so you can see

[02:49] exactly how I filter out the bad setups. Let's look at the charts. Check this to give us a clear sign of strength. And right here, we got it. Look at this large green candle. The entire body has

[03:03] closed fully above our upper envelope line. Notice how there isn't even a tiny wick touching the boundary. That is our first signal that the rubber band has snapped. But before I clicked that buy button, I looked down at the Williams

[03:15] percent R. It was holding steady above minus 20, confirming that buyers aren't just present. They are completely dominating this move. I entered a one- minute trade right at the start of the next candle, betting on this explosive

[03:28] momentum to continue. Now, look at the follow-through. The price is literally climbing outside the bands. This is why we use 15-second candles. It allows us to see the micro shifts in power. As long as that Williams percent R stays in

[03:43] the upper extreme, the buyers are in total control. We are deep in the green now and the momentum is showing no signs of slowing down. And there it is, a perfect one minute execution. The price finished significantly higher than our

[03:56] entry, proving that when you combine a clean envelope breakout with extreme momentum confirmation, you aren't just guessing. You are following the math of the market. Now, let's look at the perfect setup for a downward explosion.

[04:08] If you look at the chart right here, the market was consolidating, but then we saw a massive shift in power. A strong candle pushed through the floor and the entire body closed fully below our lower envelope line. Just like our buy rules,

[04:21] there is no wick touching the boundary. It's a clean escape. I immediately checked the Williams percent R and as you can see, it was already diving below minus 80. This is the ultimate confirmation that the sellers have

[04:35] completely hijacked the momentum. I didn't hesitate. I placed a 1 minute next candle to ride this wave of exhaustion. Look at the speed of this move. Once the price breaks that 0.1% deviation zone with high momentum, it

[04:50] often falls like a stone. The Williams R is pinned at the bottom, telling us that the selling pressure is still at its peak. We are now well below our entry are hugging the outside of the envelope. And that is how you trade a high

[05:04] probability breakout. The trade closed deep in the green far below our initial entry point. Now, pay close attention to this chart because things are moving fast. We saw a powerful candle break through our upper boundary, closing with

[05:18] Williams percent R was screaming the rules and placed a 1 minute buy trade. In trading, we always follow the plan, but the market sometimes has other

[05:30] ideas. As you can see, right after our entry, the momentum stalled and the price started to pull back toward the range. This is where professional discipline comes in. While my buy trade was still active and moving toward a

[05:43] loss, the market gave me a completely new signal. Instead of snapping back, the price crashed through both envelope lines. Look at the chart. Before the first trade even ended, a new candle closed fully below the lower line and

[05:56] the Williams percent R plunged below minus 80. The momentum had flipped 180°. Before that buy trade even closed, I immediately placed a sell trade. In one emotionally attached to your first trade. You have to follow the current

[06:11] candle. And the current candle was screaming sell even though the previous buy trade has already closed as a loss. The sell trade is now in full progress and moving aggressively in our favor. The price is hugging the outside of the

[06:25] lower envelope and the Williams percent R remains pinned at the bottom confirming that the downward momentum is still extremely strong. We are now deep in the profit zone as the market continues its rapid snap toward the

[06:37] downside. Look at the results of staying disciplined. While the buy trade didn't work out, the sell trade captured the real elastic breakout. The price pinned to the outside of the lower

[06:50] envelope. By the time our one minute expiry hit, the trade was deep in the green. And that is exactly how the elastic envelope breakout works. We saw a loss, we didn't panic, and we used the very next signal to recover and end the

[07:02] session in profit. Remember, the market is like a rubber band. When it snaps, you need to be ready to move with it. If you found value in this live session, make sure to smash the like button so I know you want more live trade

[07:15] breakdowns. Subscribe and turn on notifications because you don't want to miss our next high accuracy strategy. Join our Telegram community link in the description to download the free PDF checklist for this strategy and see my

[07:29] daily trade setups. Trading is a journey of discipline. Keep practicing, keep following the rules, and I will see you in the next video. Happy trading.