Trading breakouts is a real thing. you can turn all of that previously gained knowledge all to your advantage and turn your worst nightmares – false breakout – to your profit in a blink of an eye? How? Here are some of the ways that we are going to discuss one by one.
First, you can rely in trend lines.
Take a chart. Out a trend line onto it. Are there huge gaps between your price breakouts and the charts? If there are, that means that all of those meetings between the ‘breakouts’ and the trend line are fake and that the price is going to go together with the trend and not against it. hence – there is not going to be a breakout.