Use RSI (14).Jedidiah wrote: Sat Jul 29, 2023 4:59 pm Summary
How to Avoid False Breakouts (My Secret Technique)
Highlights
Breakout strategy involves setting support and resistance lines and waiting for sudden price breakthroughs to execute trades.
Finding breakout patterns is crucial, such as wedges, flags, rectangles, triangles, and pennants.
Look for momentum candles before confirming a breakout, typically large-bodied candles or three consecutive medium-sized candles in the same direction.
Set entry strategies to increase trading success and avoid false breakouts.
Implement a two-step take profit strategy: sell half of the shares at a 1.5 ratio and use the chandelier indicator to determine the exit point for the remaining shares.
Selling only half of the shares allows for more profits instead of limiting to a 1.5 ratio profit-taking.
The above are the trading secrets on how to avoid false breakouts. By identifying suitable breakout patterns and combining them with momentum candles and a two-step take profit strategy, you can increase the likelihood of successful trades and gain larger profits. If you like this video, please support the author by liking it and stay tuned for more content on this strategy.
Breakout strategy involves setting support and resistance lines and waiting for sudden price breakthroughs to execute trades.
Finding breakout patterns is crucial, such as wedges, flags, rectangles, triangles, and pennants.
Look for momentum candles before confirming a breakout, typically large-bodied candles or three consecutive medium-sized candles in the same direction.
Set entry strategies to increase trading success and avoid false breakouts.
Implement a two-step take profit strategy: sell half of the shares at a 1.5 ratio and use the chandelier indicator to determine the exit point for the remaining shares.
Selling only half of the shares allows for more profits instead of limiting to a 1.5 ratio profit-taking.Draw a trendline on the RSI.
Trade on the breakout of the RSI trendline.
