How to See Fake and Unconfirmed Breakouts
There are several cases where the price has broken out, but the price does not immediately move well as planned. Therefore, on this occasion we will try to study and record some considerations for open positions to see an unconfirmed breakout that produces false signals.
Notes So You Don't Get Stuck In Fake or Unconfirmed Breakouts
Learning from several cases, a good moment to take advantage of a breakout position is to consider these things:
Market is Open or Crowded
The first thing to note is the condition of the market being open or closed. For example the EURUSD pair, whether one of the two currencies is closed or open. Usually when the market closes, the movement will be very sideways and the breakout position will not function properly due to unclear price movements.
Moving Averages Have Intersected or Not
This indicator can also be a confirmation for a breakout position, when the breakout is downwards but the 5 and 10 MAs have not crossed then there is a possibility that the price will rise again to test the resistance. If you use H1 as a long-term trend, then pay attention to the breakout position in the M15 area. Trading example: H1 as the main trend and M15 as the entry level.
Support and Resistance Areas
When the price has not broken through its strong support or resistance, you should wait for a valid confirmation. The trader's trading plan is to find the most appropriate moment to execute, so don't be in a hurry and be greedy.
Oscillator Indicator Is Supported or Not
The oscillator indicator that I use is the stochastic oscillator, pay attention to the indicators on M15, M30 and H1 are they aligned and support the same movement? If not, don't be in a hurry to enter the market.
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