2024-12-24 21:19
IndustryBreakout vs. Fakeout
Breakouts can offer excellent trading opportunities, but false breakouts—or fakeouts—are common traps. To avoid getting caught, wait for confirmation before entering a breakout trade. A confirmed breakout is often accompanied by high volume and a strong candle close beyond the support or resistance level. Use oscillators like RSI to ensure the market isn’t overbought or oversold. Setting a stop-loss just below the breakout level protects your capital if the move reverses. Remember, patience is key. Spotting real breakouts takes practice, but mastering this skill can significantly improve your success rate.
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Breakout vs. Fakeout
| 2024-12-24 21:19
Breakouts can offer excellent trading opportunities, but false breakouts—or fakeouts—are common traps. To avoid getting caught, wait for confirmation before entering a breakout trade. A confirmed breakout is often accompanied by high volume and a strong candle close beyond the support or resistance level. Use oscillators like RSI to ensure the market isn’t overbought or oversold. Setting a stop-loss just below the breakout level protects your capital if the move reverses. Remember, patience is key. Spotting real breakouts takes practice, but mastering this skill can significantly improve your success rate.
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