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Breakouts

FALSE BREAKOUTS | SPOT/AVOID/TRADE THEM LIKE PRO📈📉 FALSE BREAKOUTS | SPOT/AVOID/TRADE THEM LIKE PRO📈📉 How often have you opened a key level breakout trade, and then the price turned against you? False breakout happens quite often and it is a problem for many traders who buy at highs and sell at lows. ❗️Breakout trading is a fairly popular and viable trading strategy. However, some breakouts often turn out to be false. This can be quite frustrating, not to mention that it can often lead to a losing trade. However, in many cases, an experienced trader can analyze the market situation and react to it accordingly. False breakouts can make a profit if you know how to trade them correctly. ⚠️A false breakdown is a situation when the price violates an obvious level, but then suddenly changes direction. When the initial breakout of the level occurs, many traders open a trade in the direction of the breakdown. These traders are trapped when the price reverses, which triggers a series of stop losses. New traders are also entering the market, and this puts additional pressure on the price. This often turns the price into a new trend, the opposite of the initial breakout. A breakout that turns out to be false is a sign of strength in a downtrend or weakness in an uptrend. As you can see, a false breakout can easily cause significant losses for any trader. Some traders develop their entire strategy around trading false breakouts, as this can be a very powerful trading approach. Some of the best trades happen when market players fall into a trap and their stops start to work. ✅How to find patterns of false breakouts? 🟢If you do not learn how to correctly identify false breakouts, you will not be able to trade them profitably. For example, there will be situations when the price returns to the breakout point, and only then continues its movement. 🟢One of the ways to detect false breakouts is to monitor the volume. Real breakouts are usually accompanied by strong indications of trading volume at the time of the breakout. When this volume is absent, there is a higher probability that the breakout will not happen. 🟢Thus, if the trading volume is low or it decreases during the breakout, a false breakout is likely to occur. In contrast, if the volume is large or it increases, a real breakdown is likely. 🟢It is also useful to monitor not only the trading volume but also the price movement on the lower timeframe. In many cases, you will see that the price makes a very sharp pullback on the lower timeframe, which is not visible on the higher timeframe. ✅False Breakout Trap 🔴After all, many trading textbooks say that a breakout can be considered confirmed when a candle closes above the resistance level. However, the price moves in your direction for a while and then turns 180 degrees. As a result, you have a stop loss triggered. 🔴The false breakout trap includes several candlesticks, usually 1-4, that go beyond the key support or resistance level. Such breakouts occur after a strong movement, as the market has reached an important level, but the price momentum still retains its strength. Have you ever been trapped by a false breakout?
BITFINEX:BTCUSDEducation
by TopTradingSignals
8
Why breakout never worksHello traders! This is another educational post just to break your false perspective which will benefit you and it will also help you not to fall into the trap of uneducated traders. I have seen traders who just make a trendline line and put a bullish arrow and say that after the breakout price will go to heaven but in reality breakouts never works and they are very far from reality. If you buy a breakout blindly then there is only 1 out of 6 chance that you are correct. In other words, you will keep losing again and again with that strategy. So why breakout never works? The patterns that we see are illusions, they are not real but the market does react to the trendlines and patterns. What I mean by the reaction is that after a breakout market forms different kinds of reactive patterns. These patterns help the market to move further up or they push the market back in the trendline and most of the time these pattern pushes the market back in the trend. If you can figure out what pattern is formed after the breakout then you can predict easily that the breakout will work or it will fail. Do your research and ask the questions. Here is the tip: Selling on bullish breakouts is more effective than buying on bullish breakouts.
Education
by Aadil1000x
1
RBL Bank - Bullish Breakout🔴DISCLAIMER ***** It's just for an educational purpose and so you must also follow your own technical analysis before taking up the trade ****** Aggressive traders enter at the breakout and conservative traders may give entry after retracement (Retracement is optional, we cannot expect every stock to take a retest after the breakout, it may also continue to have its bullish pressure after the breakout) After reaching our targets, trail your stop loss to get maximum profit from the stock in a single trade
NSE:RBLBANKLong
by PrakWorld_Traders
BTCUSD - WEEKLY - THREE WHITE SOLDIERS !Good morning to all of you. Today we are going to look closely at the weekly picture in drawing several trading zones : I : BREAKOUT TRADING ZONES II : BULLISH ZONE III : SUPPORT ZONE BREAKING ZONES : In looking at the last three weeks price action, a " Three white soldiers" pattern has been identified and each weekly closing level confirmed an upside breakout BULLISH ZONE : Current weekly closing will give an important indication about further development. Indeed, a weekly closing above 59'600/60'000 would be the first signal of an upside continuation move , calling for 62'250 ahead of the 65'000 area, former ATH SUPPORT ZONE : A failure to hold, on a weekly closing, above 59'600/60'000 would trigger a renewal selling pressure and would open the door for the 55'000 area as an intermediate first support target (former congestion zone) ahead of the 52'000 area (September former tops) Below the Tenkan-Sen (conversion line) is currently @ 51'260 CONCLUSION : While a " Three white soldiers" should be seen and considered as a strong reversal signal, it is usually followed by a consolidation phase and this should be closely monitored in watching upcoming price action on shorter time frames (Daily and intraday !!) In acting accordingly you will be able to detect early warning and early signal (s) of a potential trend reversal. Watch also technical indicators, such as RSI to also detect divergence (s)
BITSTAMP:BTCUSD
by Ironman8848
1
LRN Breakout TradeLRN is setting up in a textbook breakout pattern. Sales up huge with gains of 44%, 46%, 52% and 48% in each of the last four quarters respectively. Notice the pullbacks getting shallower from left to right. This is a sign that profit-taking is drying up and fewer shares are being offered as the stock trades from weak hands to strong ones. The volume contractions in the tighter range confirms this further. Monday's selloff likely shook out the last wave of weak-handed holders which will only strenghten this setup. Consider buying new highs above 35.96 with a stop below the most recent swing low.
NYSE:LRNLong
by rossgivens
HNTUSDT is creating a bull flagHNTUSDT is creating a bull flag and now the price is testing the 4h resistance. IF the price is going to have a breakout, According to Plancton's strategy (check our Academy), we can set a nice order ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure. Here is the Plancton0618 technical analysis, please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
HLong
by InkyGrip
2
US30 About to Explode Downward Dow Futures or US30 has been holding itself against all odds and trying hard to hold it at its current levels but it seems on the charts that some selling pressure is being built up within its consolidation. As charts suggest, Bollinger Band is about to explode downside and once breakdown happens, then there would be massive downfall and bloodbath in the market. So, be cautious with your long trades and be hedged all the time. Disclaimer : Trading is never ever recommended as it is injurious to mankind. This is purely my study based on technical charts and for educational purpose only. Please do your analysis before taking any trades given by me. I MUST not be held responsible for any profit or loss out of any trades you take on our advice. All Disclaimers Apply.
UShort
by Gann-Elliott-Trader
LIT ascending channelLIT is part of DOT ecosystem. Behaves similarly like DOT, and DOT did 17% run-up il last 36hrs, which is not big, but in this market conditions, the fact that it's not affected by BTC erratic behavior is bullish alone... Recently bounced from support trendline of the channel and also break resistance at 5,29. Volume increasing and MACD on 12hr chart looks bullish. Breakout level at 6.095 was a big support in the past, and we can expect that is an important level to overcome now. If we break that level, we could expect that it will act as support for further upside movement. You have also SHORT entry levels on the chart since BTC's possible significant drop could pull this one down also and possible rejection from 6,095 could push it down to retest 5,29 before pushing up... Set your alarms and don't miss this. GL traders
by PhilosophersStone