DO NOT jump the gun!
This advice is essential to survive in the first years of your learning curve.
Inexperienced traders (and sometimes experienced as well) often assume that the breakout of a chart pattern is a perfect entry. Many times this is not the case. Don't be fooled by what you see, since everybody is seeing the same as you - provided that you have acquired a certain ability to find the patterns. Considering that the most part of the retail traders lose their money, we can assume that the market will find ways to wipe out the majority of traders before resuming a trend.
Again, confer with other analysts that you are seeing the same pattern. And above all, wait for the pullback after the breakout. By now you know that the market moves in waves, that means that price comes back most of the times. If it comes back most of the times, this gives you an edge to enter at much better levels, and specially after the majority has been stopped out. At this point, you should be looking to pull the trigger. Read more
Do you want to learn more?
VIDEO: Breakout Trading- Alex Ong
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VIDEO: Low Risk Breakout Trading in Forex - Sam Seiden
REPORT: The Daily Breakout Strategy - Maite Krausse
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Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.
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