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  • Price Action Breakout Trading

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    Vinay Kumar
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    Breakout trading refers to when the price of an asset moves above a resistance area or below a support level. There are three types of breakouts: direct breakouts, breakouts and retests, and consolidation and breakouts. To avoid false breakouts, traders should enter when the breakout is retested, after a period of consolidation before the breakout, and only if the breakout is confirmed by an increase in trading volume without revisiting the breakout zone.

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    Breakout trading refers to when the price of an asset moves above a resistance area or below a support level. There are three types of breakouts: direct breakouts, breakouts and retests, and consolidation and breakouts. To avoid false breakouts, traders should enter when the breakout is retested, after a period of consolidation before the breakout, and only if the breakout is confirmed by an increase in trading volume without revisiting the breakout zone.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    26 views7 pages

    Price Action Breakout Trading

    Uploaded by

    Vinay Kumar
    Breakout trading refers to when the price of an asset moves above a resistance area or below a support level. There are three types of breakouts: direct breakouts, breakouts and retests, and consolidation and breakouts. To avoid false breakouts, traders should enter when the breakout is retested, after a period of consolidation before the breakout, and only if the breakout is confirmed by an increase in trading volume without revisiting the breakout zone.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
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    Breakout trading

    Terms

    What is a breakout?
    A breakout refers to when the price of an asset moves above
    the resistance area or moves below the support level.Breakout
    trading will give us better risk reward

     Types of breakouts?
    1. Direct breakout
    2. Breakout and retest
    3. Cosolidation and breakout
    Types of breakouts
    How to avoid false breakout
     There are many ways to enter a trade in a breakout. Many time it lead to false breakoust So to avoid the
    false breakout enter when
    1. When breakout was retested
    2. Consolidation before breakout
    Signs of false breakout
    3. After breakout it should not consolidate
    4. It should not fall below that breakout zone
    5. Volume must confirm the breakout
    Examples of false breakouts

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