2024-12-23 20:05

IndustryHow to Spot Fake Breakouts and Avoid Trap
Fake breakouts are a common trap in Forex trading, where the price temporarily moves beyond a support or resistance level only to reverse back into the range. These traps can lead to significant losses if you’re not careful. To avoid them, look for confirmation before entering a breakout trade. For example, wait for a candle to close beyond the breakout level and check for increased volume, which indicates strong participation from buyers or sellers. Use additional indicators, like the Relative Strength Index (RSI), to confirm the momentum behind the breakout. Placing your stop-loss slightly beyond the breakout point can also help protect you from sudden reversals. Remember, not every breakout is genuine, so stay vigilant and trade cautiously.
Like 0
I want to comment, too

Submit

0Comments

There is no comment yet. Make the first one.

ebube7650
Trader
Hot content

Industry

Event-A comment a day,Keep rewards worthy up to$27

Industry

Nigeria Event Giveaway-Win₦5000 Mobilephone Credit

Industry

Nigeria Event Giveaway-Win ₦2500 MobilePhoneCredit

Industry

South Africa Event-Come&Win 240ZAR Phone Credit

Industry

Nigeria Event-Discuss Forex&Win2500NGN PhoneCredit

Industry

[Nigeria Event]Discuss&win 2500 Naira Phone Credit

Forum category

Platform

Exhibition

Agent

Recruitment

EA

Industry

Market

Index

How to Spot Fake Breakouts and Avoid Trap
| 2024-12-23 20:05
Fake breakouts are a common trap in Forex trading, where the price temporarily moves beyond a support or resistance level only to reverse back into the range. These traps can lead to significant losses if you’re not careful. To avoid them, look for confirmation before entering a breakout trade. For example, wait for a candle to close beyond the breakout level and check for increased volume, which indicates strong participation from buyers or sellers. Use additional indicators, like the Relative Strength Index (RSI), to confirm the momentum behind the breakout. Placing your stop-loss slightly beyond the breakout point can also help protect you from sudden reversals. Remember, not every breakout is genuine, so stay vigilant and trade cautiously.
Like 0
I want to comment, too

Submit

0Comments

There is no comment yet. Make the first one.