How to follow false breakouts? - Page 77
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Thread: How to follow false breakouts?

  1. #1
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    How to follow false breakouts?

    First you might you want to ask what is a false breakout?.

    This is scenerio at the market resistance or support level where price breaks and closes above resistance or breaks and closes below support.

    At this point lots of traders will say it's an opportunity to enter a buy trade above past resistance or enter a sell trade below support.

    Then after entry, the market goes back into the resistance trade level or goes back into the support trading.. Then we say false breakouts have occurred.



    This image above shows an an example of what am saying.

    Safety measures : learn to set stop loss below broken resistance and above broken support

    Trade plan: you can look out for false breakouts and make a reversal entry once you a certain it was a false breakout

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  2. #761
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    what you mentioned means we have to, always monitor the chart to identify false breakouts, for traders who don't have much time to monitor the candlestick rate from small tug pulls, so we must always keep close prices on the candle from aini to identification false Breakout returns to be a more difficult basic thing, maybe the solution is the habit of seeing close prices or where prices are false, or maybe the type of candle at the closing price.

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  3. #762
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    Quote Originally Posted by ctting View Post
    what you mentioned means we have to, always monitor the chart to identify false breakouts, for traders who don't have much time to monitor the candlestick rate from small tug pulls, so we must always keep close prices on the candle from aini to identification false Breakout returns to be a more difficult basic thing, maybe the solution is the habit of seeing close prices or where prices are false, or maybe the type of candle at the closing price.
    traders can set the stop loss or also take profit and start to accept all the result with gracefully. But for some traders they can maximize earning with keep monitoring the charts and it can be done by them who have much time for trading but fot some others who have a little of time still have the chances for this with using trailing stop loss where it will move to follow the price and lock the profit automatically. But they need to use the vps anf set it or just turn on the pc for long time

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  4. #763
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    This is the right way to trade by follow any strategy we have developed , because if we are applied a strategy and we have set our stoploss and take profit to it so we shall develop own trade better and we are safe for trading if we set the stoploss and take profit there is noting to be worry we just wait for the results .

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  5. #764
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    It is very safe for trader to use stoploss and take profit in this market , so if we are using them well we should make our plan in right of direction , working in market with the best system of trade will help to make our plan very well , only a good understanding about it will give trader chances of wining and we have own developed and perfect system .

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  6. #765
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    Quote Originally Posted by learner View Post
    It is very safe for trader to use stoploss and take profit in this market , so if we are using them well we should make our plan in right of direction , working in market with the best system of trade will help to make our plan very well , only a good understanding about it will give trader chances of wining and we have own developed and perfect system .
    I think with stop loss in place it will help traders minimize their chances of loosing much more if they find himself in the market situation of false breakout. The only way to avoid these false breakout hitting you hard is to apply your stops that you can as well understand how to maintain a profitable trading. False breakout is normal but we must be careful and understand how we can massively deal with risk of trading such market.

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