False breakouts occur when a market moves above or below a critical support or resistance level but fails to maintain the momentum. False breakouts: A trap for traders Many traders get caught in false breakouts, expecting a sustained move beyond the level, only to see the market reverse sharply. False breakout trading involves anticipating this…
Understanding how to trade false breakouts safely is especially important in online trading. Trading has always been a risky business. However, we must do everything possible to reduce this risk. Today, I’m going to show you some principles that will improve your results. By the way, I’m going to show this with a real example….
Real false breakout trading is what my Perpetual EA trading robot does. For example, here is its trade made on December 23. Note that at 16:15, there was a good sell signal. We also have a false breakout there. Why didn’t the robot trade this signal? Because, at that moment, it had not yet identified…