What is the first rule to enter an order on a breakout from a band?

The first rule to enter an order on a breakout from a band is to enter on the day’s close after an intraday breakout. This approach focuses on confirming the breakout's validity by waiting until the market closes, providing evidence that the breakout has sustained itself rather than being a false move. An intraday breakout can often lead to false signals, and entering at the close allows traders to capture a more reliable bullish signal as it indicates that the price has remained above the breakout level for the duration of the trading session.

By taking this approach, a trader reassesses the market dynamics post-breakout, avoiding impulsive decisions that might lead to losses if the breakout fails shortly after occurring. This strategy helps improve entry precision and aligns the trade more closely with a confirmed trend shift rather than relying solely on intraday price fluctuations, which can be misleading. Therefore, the emphasis on waiting to enter at the day's close is crucial for ensuring that the breakout holds, thus increasing the likelihood of achieving anticipated trends.