Untold Secrets of Breakouts
- 3 years ago
Breakout trading is easy and could be highly lucrative.
Every new trader ponders over breakout strategies and this is bread
and butter for most successful professional traders.
Catching a breakout and riding it all the way sounds very exciting, but
how to do it?
Today I will tell you a few secrets of breakout trading which no one ever talks about, and also at the end, I will share a technique and after learning that technique you may never fall for fake breakouts so make sure you watch this video till the end. I will clear all your doubt on breakout trading strategy simple, how to trade breakouts in forex, best way to trade breakouts in forex, full info on breakout trading, how breakout form in forex trading, how to trade breakouts in forex strategy, avoid fake breakouts in forex trading, avoid fake breakout forex, breakout trading info, breakout for trade.
Now before we learn about how to trade breakouts let us first understand what is a breakout and how is it formed.
In the simplest terms, breakouts are price spurts above or below a
the certain price level on the price charts.
See breakout as the price breaking free from something that was
stopping it.
Like, imagine price was moving between these two levels, and every time it touched the line it moved down and every time it touched the lower line it moved up.
These levels were holding the price from going any higher or lower
and hence it stays within it.
And when it finally breaches any of the lines, the price breaks out and starts moving in the direction of the breakout.
Now that you know what a breakout is let's see how a breakout is formed as it will be very helpful when we learn to trade breakouts.
The forex market comprises two types of participants, the
institutional players or the whales, and the retail players.
Now, these big-money players, or whales, do not just come into the market, place their trades for millions or
billions of dollars, day trade or swing trade it, and leave.
They instead build their positions over a period of time. This is what
makes the price move in phases.
The phases are mainly the accumulation phase and distribution
phase.
In the accumulation phase, these whales build their position over
time as They have a large capital to put in hence they need that much
liquidity in the market.
They cannot open all of their positions at a single price as there will be not enough liquidity to do so so they try to enter at different levels and keep the average price as low as possible.
This accumulation phase is the ranging phase that we see on the price
charts.
These whales do not just build their position in any given currency
pair just based on gut feeling.
They have access to sophisticated information and tools and they
have a bias for the asset.
Once they have built their position, they wait for the plan to play out.
And this causes the price to break out of the range of the accumulation phase and move in the direction of the breakout.
Now that you know what is break
Every new trader ponders over breakout strategies and this is bread
and butter for most successful professional traders.
Catching a breakout and riding it all the way sounds very exciting, but
how to do it?
Today I will tell you a few secrets of breakout trading which no one ever talks about, and also at the end, I will share a technique and after learning that technique you may never fall for fake breakouts so make sure you watch this video till the end. I will clear all your doubt on breakout trading strategy simple, how to trade breakouts in forex, best way to trade breakouts in forex, full info on breakout trading, how breakout form in forex trading, how to trade breakouts in forex strategy, avoid fake breakouts in forex trading, avoid fake breakout forex, breakout trading info, breakout for trade.
Now before we learn about how to trade breakouts let us first understand what is a breakout and how is it formed.
In the simplest terms, breakouts are price spurts above or below a
the certain price level on the price charts.
See breakout as the price breaking free from something that was
stopping it.
Like, imagine price was moving between these two levels, and every time it touched the line it moved down and every time it touched the lower line it moved up.
These levels were holding the price from going any higher or lower
and hence it stays within it.
And when it finally breaches any of the lines, the price breaks out and starts moving in the direction of the breakout.
Now that you know what a breakout is let's see how a breakout is formed as it will be very helpful when we learn to trade breakouts.
The forex market comprises two types of participants, the
institutional players or the whales, and the retail players.
Now, these big-money players, or whales, do not just come into the market, place their trades for millions or
billions of dollars, day trade or swing trade it, and leave.
They instead build their positions over a period of time. This is what
makes the price move in phases.
The phases are mainly the accumulation phase and distribution
phase.
In the accumulation phase, these whales build their position over
time as They have a large capital to put in hence they need that much
liquidity in the market.
They cannot open all of their positions at a single price as there will be not enough liquidity to do so so they try to enter at different levels and keep the average price as low as possible.
This accumulation phase is the ranging phase that we see on the price
charts.
These whales do not just build their position in any given currency
pair just based on gut feeling.
They have access to sophisticated information and tools and they
have a bias for the asset.
Once they have built their position, they wait for the plan to play out.
And this causes the price to break out of the range of the accumulation phase and move in the direction of the breakout.
Now that you know what is break