How to Know False Breakout

Breakout is a price breakout at a certain level that is considered important, it can be a resistance level, support level or a round number psychological level. A breakout occurs when the price moves past a certain level, so a beakout can be interpreted as a potential trade where the price of the asset moves significantly through the resistance level or moves below the support level. If the price movement fails to penetrate that level, it is said to be a false breakout.

Fake breakout, didn't happen as expected. After the price breaks the critical level, the breakout moves back in the previous direction and tends to go there. General experience shows that false breakouts occur quite often in the market.

In reality the market is often different. The price can break for a moment and immediately reverse direction again (bounce) or a false break occurs. And traders who take advantage of this moment are called contrarian traders.

Contrarian trading generally looks for buy entry opportunities when price movements go down or sell opportunities when prices are considered overvalued or too expensive, of course after adjusting for the possibility of a trend reversal (trend reversal) through confirmation of technical indicators or price action formations that are formed.

In the forex market, false breakouts occur more often considering that in general market conditions that are really trading are only about 20% to 30% of all price movements. Therefore this strategy is quite popular in forex trading. Of course, it is not easy to identify a false break, traders are required to carefully identify it so that traders do not get trapped and make a wrong move and cause losses for traders.

Not infrequently many people are traumatized when dealing with an uncertain market, especially traders who often follow trends. The trauma arises because traders feel pressured to face many things when prices move unstable or do not follow price volatility. Thus, the ability to analyze market price movements is important.

Watch the video below for full details!

More info : 

Free material soft copy contact 081 258 066 174 wa/call 

Private info / paid premium class (guided forever until consistent profit and independent). 

Whatsapp/call 081 233 593 672 Or direct access to our web www.wijayatrading.com