Forex Trading with Breakout Strategy
Trading Breakout, I have been OFF for some time not writing because I was busy with market analysis to welcome the American presidential election between Trump vs. Hillary Clinton which was held on November 8, 2016. And indeed what many parties have predicted that the market will experience a lot of correction, say The JCI fell -8.2% (5,491.7 – 5,043.4) in just 4 days after the US presidential election.
Hiks1000X is sad, but yes, that’s the name of the market. But if I think this is the right time to look for cheap stocks (just wait for the timing:).
But for this time we will not discuss how the JCI and Global Market react to the process of Donald Trump’s election as president. On this occasion, we will discuss Forex Trading with Breakout Strategy.
A breakout here is not a broken heart I see JCI and Global Market which have experienced a lot of corrections in just a few days but the breakout strategy here is a strategy to open a position when the price can break the support/resistance line, pivot point, Fibonacci levels, etc.
So this strategy has the goal of being able to open a good starting position and then follow the price movement until the volatile run out means reversing direction.
Volatile here is not as large as the volume in stock trading. When we trade stocks we can use volume as confirmation of opening or closing a position so that the volume is part of a very profitable breakout strategy. Unlike the case when we do forex business, we will not be able to see the volatility of trading volume.
In the forex volatility business, we can see is the amount of price movement. If in forex trading there is a very large price difference in a short period of time then it can be said that the market is very volatile. And if on the contrary that in a short period of time there is a very small price difference then it is said that the market has low volatility.
So when PSAR is very volatile, this shows that many traders do transactions and this also causes many traders to go bankrupt.
And instead of following a very volatile market, it is better to wait when the market is very low in volatility so we can easily analyze the market and wait for the right moment when a breakout occurs in price movements in the market.
Well, maybe that’s the initial description of Forex Trading with Breakout Strategy which will be discussed in this bog. So don’t go anywhere and follow this forex trading lesson, let’s learn together to earn Forex4live through Forex Trading.