Saturday, June 18, 2011   Breakout is the topic of the post on
the blog ‘Trend’ today. It is a trading strategy that a lot of
traders use on various times frames. Let me give you an example
of a breakout trade before I speak about theoretical and
practical aspects of the strategy.   What is a breakout?
Breakout is a price movement through some level (support or
resistance) that held for some time, but finally increased
volumes of long or short orders forced the price of a security
to leave the range and go up or down. It happens when a lot of
orders that are placed very close to the level are opened, or
some fundamental news pushes the price out of the range.   False
breakout  When the price immediately or after very short period
of time comes back to its range we call is a false breakout. As
very many traders apply the strategy we have a lot of false
breakouts nowadays in all financial markets. This means that
this trading strategy should not be your only one, unless you
are able to have a large variety of