Breakouts are a common phenomenon in the Forex market and occur across different chart intervals. It is therefore no surprise that break out trading strategies have become one of the most popular ways of trading Forex , besides other strategies such as trend following methods. What is Breakout in Forex? A breakout is a price movement of a security through an identified level of resistance, which is usually followed by heavy volume and an increased amount of volatility. Traders buy the underlying asset when the price breaks above a level of resistance or when it breaks below a level of support. A breakout is the point at which the market price breaks away, or moves out of a trading range . The trading range can be for any length of time but once prices exceeds the high or low of the range, a breakout has occurred. The accepted market wisdom is “buy low sell high”. What is False Breakout in Forex? A false breakout is when price temporarily moves above or below a key support or res
To be successful in the foreign currency markets you must be able to follow a proven recipe and adapt to all of the variables that can be thrown at you during any given trading day. It is inevitable that you will make some bad trades from time to time. Even the best traders make bad trades. But the question you need to ask yourself is have you learned from your mistakes? It can be easy to be short-sighted when gold trading, but you can’t get too high or too low at any given time. Here, we explore 5 timeless rules that are an important part of successful trading, no matter the techniques, markets or time frames you trade. Equidious Forex Signals follows these rules while providing the signals to their clients. 1. Treat trading like a business Like any business, trading incurs expenses, losses, taxes, uncertainty and risk, and these factors must be taken into account. The key to developing a successful trading business is good planning, both for the overall business and