Price Action Breakout Trading

 

Breakout trading

 

Terms What is a breakout?  A breakout refers to when the price of an asset asset moves above above the resistance area or moves below the support level.Breakout trading will give us better risk reward

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Types of breakouts?

1.

Direct breakout

2.

Breakout and retest

3.

Cosolidation and breakout

 

Types of breakouts

 

How to avoid false breakout 

There are many ways to enter a trade in a breakout. Many time it lead to false breakoust So to avoid the false breakout enter when

1.

When breakout was retested

2.

Consolidation before breakout

Signs of false breakout 3.

After breakout it should not consolidate

4.

It should not fall below that breakout zone

5.

Volume must confirm the breakout

 

Examples of false breakouts