FOREX THEORY
How to Measure the Strength of a Breakout
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? If only there was a way to avoid fake outs…
Hmmm…
You guessed it…. THERE IS A WAY!
In fact, there are a couple of ways to tell whether or not a
trend seems to be nearing its demise and a reversal breakout is in order.
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