-is to find out if the momentum is getting stronger or weaker, if the chart make a higher high and the indicator made lower high so it refer to; the momentum is decreasing, in order to spot the (breakout from fakeout) -in this example we have a rectangle consolidation, you can see the first breakout was a fake out, here we'll use divergence to spot this fake out...
This is a great example of the 1-2-3-Breakout pattern on Bitcoin using the Daily chart. This pattern can be applied to any equity. Chart patterns represent human behavior and that is a constant among all asset classes. Point 1 - The First Test - The New High Price reaches a new high and pulls back when investors take profits. Price falls. Point 2 - Second...
Due to the nature of an oscillating indicator such as an RSI vs lagging idicators such as MACD, the breakout of the RSI Linechart may indicate a range breakout and volatility expansion before price action.
Hello Traders, All of us want the price action to follow the direction of our trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a...
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Hey Guys, today I want to start writing about breakouts. As I have read many articles these days it almost looks like the breakouts shouldn't be traded at all. Many traders even despise breakouts because one is entering trades TOO late. But the truth is there is many situation where the strong BO gives nice confirmation for a trade. In this part I want to give...
FX:EURUSD Notes for beginners; Safe Trades; open.spotify.com
I've already written my "Trading Recap" blog post for today but I wanted to share something with you guys. For you guys that have been following along with my blog you know that I've been working on an article looking at professional athletes and professional traders. One of my main comparisons is the amount of preparation and review that both do. Just like...