FOREX THEORY
How to Trade Breakouts
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 price level is breached such as support and resistance levels, pivot
points, Fibonacci levels, etc.
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.
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