Breakout Streatgy is a very excellent trading method in forex. But several time we found that on breakout two situations are arising.
1. When price hit certain value it follow either of steps
a. If trend is upward the trend will continue to upward direction.
b. It may go for retracement and again try to hit the resitence/support. this time if it break the breakout line again it is a true breakout.
c. if second time it failed to pass the resistence/support. it may again go for retracement or may be go for new downtrend.
1. When price hit certain value it follow either of steps
a. If trend is upward the trend will continue to upward direction.
b. It may go for retracement and again try to hit the resitence/support. this time if it break the breakout line again it is a true breakout.
c. if second time it failed to pass the resistence/support. it may again go for retracement or may be go for new downtrend.
