This Webinar Covers How Breakouts Should Be Looked At
In this webinar on how you should be looking at breakouts, you’ll find these subjects:
– The different kind of breakouts:
– Trend Lines
– News can be very spiky and is a risky way to trade breakouts, but the movements can sometimes be very significant. This should only be traded if you’re willing to take on that additional risk.
– When trading a breakout from a range, you first need to be able to recognize a range. Understanding the range is key and understanding comes from reading the market and then trade it from the edges.
– If you want to know how to recognize and properly draw support/resistance, check out the webinar on that right here. When the price goes through the support or resistance, but comes right back in, it will just leave a tail. Basically, price got rejected. Again, check out the last webinar in the link to get a more detailed explanation.
– When do sellers or buyers quit?
– Read the story: how much percentage retracement? How much retracement for this leg? And the next one, and the next one, etc? Sometimes they slow down, sometimes they gain momentum. Take notice of this. But lets not forget the bigger picture if it approaches a big SR level or a big SD level. We want to see if that big thing is alive.
– Think like a seller if you want to buy and vice versa. You will see the risks more clearly.
– Breakouts can also happen from trend lines.
– Break out trading is a style of trading. It’s not an understanding of the market. You need to still understand why the market behaves in certain ways, you have to master the read to understand why a certain breakout has a bigger chance of working.