Category: Forex Basics

How ‘not to trade’ breakouts

Breakouts are classic price patterns that traders have been using for years to make profitable trades. Breakouts work so well because they indicate a market that has started a new trend, one which could ultimately last for a long time and lead to spectacular profits.

In short, they signal a complete change in direction for the market.
As with any technical pattern however, breakouts work best when used in the correct way. Trading a break-out that is not true will ultimately lead to whipsaw and trading losses.

Read the rest of the article How ‘not to trade’ breakouts
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Forex Trendlines Basics: What You Need to Know to Get Started Graphing Pivots

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