The point is, we use extreme movement from currency pair and we can open trading in the right moment to get profits with this extreme movements. If you want trading using breakout strategy there are things you should know first. First we should know how to identify the breakout potential movement.
There are some tools that we can use for determine a breakout such as Ichimoku Tips, High Wave Candlestick, diamond price chart historical, granville moving average, Bollinger Band Signals and etc. But in this post we use forex chart patterns to identify breakout potential in the market forex. Breakout movement can be a reflection from market trend continuation or trend reversal.
Breakout trading in the market occurs at the certain levels, for instance when the market price touches the support and resistance levels, fibonacci levels, daily high low, or in trading chart patterns. You can read about chart patterns in another post in this site and you can also another articles about heikin ashi candlestick oscillator, Heiken Ashi Strategy, Leverage Ratio Meaning, Standard Deviation Trading, Heiken Ashi Bar.
In this article I will share about identify the breakout pattern using trendlines and channel trading. Using trendline and channel can be describe as follow.
In the first image, we drew trendline and it role as support level. When the market price break the support level, usually it will become breakout movement. Breakout movement also can be identified with channel as you see in the second image.
The channel roles as support and resistance level, and when the market price touch and break the channel line it can become breakout potential too.
Like other article such Cci Woodies Lnx V6, Linear Regression Channel Trading, How To Use Fast Stochastic, Two Bar Reversal Pattern, and Raff Regression Channel, a breakout trading strategy also become intersting topic among Forex trader in the world. But we have to be careful with it because this method can also gives you false signals during trading activities.
Anyway, breakout trading is one of the trading methods that we should know as a accurate trading tool to read market price fluctuations. Search and read about Mtf Stochastic Alert, Bollinger Bands Technical Analysis, how to calculate on balance volume, Macd Cci Strategy, mtf candle in this site.
0 comments:
Post a Comment
IF YOU WANT TO KNOW ANYTHING about Forex trading system, Forex indicator, Expert Advisor, etc. and you want me to write about it - YOU CAN ASK ME using comment box.