Category: 3. Trading Breakouts & Fakeouts

Trading Breakouts With breakout trades, the goal is to enter the market right when the price makes a breakout and then continue to ride the trade until volatility dies down. Breakouts are significant because they indicate a change in the supply and demand of the currency pair you are trading. You’ll notice that, unlike trading stocks or futures,…

In order to fade breakouts, you need to know where potential fakeouts can occur. Potential fakeouts are usually found at support and resistance levels created through trend lines, chart patterns, or previous daily highs or lows. Trend lines In fading breakouts, always remember that there should be SPACE between the trend line and price. If there is a gap…

Fade the breakout you say? Was that just a typo? Did you mean to say, “trade the breakout”? Nope! Fading breakouts simply means trading in the opposite direction of the breakout. Fading breakouts = trading FALSE breakouts. You would fade a breakout if you believe that a breakout from a support or resistance level is…

Breakouts are popular among forex traders. It makes sense right? When price finally “breaks” out of that support or resistance level, one would expect the price to keep moving in the same direction as the break. There must have been enough momentum building up in order for price to have broken out of the level, right? It’s…

As you learned earlier, when a trend moves for an extended period of time and it starts to consolidate, one of two things could happen: The price could continue in the same direction (continuation breakout) The price could reverse in the opposite direction (reversal breakout) Wouldn’t it be nice if there was a way to know to confirm a breakout?…

Just like breakouts on your face, the nice thing about breakout trading in forex is that opportunities are pretty easy to spot with the naked eye! Unlike the former, you don’t even have to look in the mirror! Once you start getting used to the signs of breakouts, you’ll be able to spot good potential…

Breakout begins with eight rows of bricks, with every two rows a different color. The color order from the bottom up is yellow, green, orange, and red. Using a single ball… Oh snap! Wrong lesson! We’re supposed to be talking about trading breakouts, not playing Breakout! Sorry about that. Where were we… When trading breakouts in forex, it is important…

Volatility is something that we can use when looking for good breakout trade opportunities. Volatility measures the overall price fluctuations over a certain time and this information can be used to detect potential breakouts. There are a few indicators that can help you gauge a pair’s current volatility. Using these indicators can help you tremendously when…

What are breakouts and how can I take advantage of them? Unlike the breakouts you might have had as a teenager, a breakout in the trading world is a little different! A breakout occurs when the price “breaks out” (get it?) of some kind of consolidation or trading range. A breakout can also occur when a specific…