Trading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation.
Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader.
Now lets see about the important key points to consider to confirm such valid breakouts
TYPES
There are different types...
Psychology and Behind the scenes stuff:
1. At the BO, there was a massive bullish candle with a very high volume. This took out the previous resistance level.
2. The retailers saw this opportunity because the price closed above the previous resistance. Hence, they entered Longs.
3. The BO was followed by a Doji and then a Bearish candle. This indicated no...
Underlying logic:
1. The market already gave 11% in the impulsive move and created a high. Obviously, the momentum was fading out.
2. If you recall my lecture on market structure, you already know that after the creation of a high, we must come down to create a new higher low. The market cannot keep making new highs without creating a higher low.
3. There was...
A lot of retailers may have gotten caught in this fake breakout in TCS. I provided that rough path (which I anticipated it would follow) in my original idea because I believed the conditions were not right for a breakout at the moment. The majority of the time, we cannot avoid getting trapped in fake breakouts. But in the recent case of TCS, the fakeout could have...
