A2SR - Here is the best momentum we can expect  :  true breakouts

A2SR - Here is the best momentum we can expect : true breakouts

21 May 2019, 19:41
Yohana Parmi
3
145

Hello traders,
greetings.

This is a continuation of short-term trades on sideways and
-- now how to towards strong breakouts.

I'm sure you know about false breakouts.
Yes, but many beginners still don't realize that
-- a false breakout will occur if the current price is locked between Support and Resistance (sideways).
-- We can't expect breakouts on that situation.
-- That is good time for scalper :)

  • Strong Breakouts
    breakouts means: breakout and breakdown.

    A2SR helps you in analyzing the market, besides a sideways and reversals technique at strong SR
    -- then this is one of best feature : -- when we can expect true breakouts --

    A2SR automatically draws a trendline stated as "Strong Breakout" or "Strong Breakdown" like this :

    Fig.1 - basic of strong breakouts pattern



  • Example
    GBPAUD today (and also to several other pairs today)

    Fig.2 Strong breakout - H1


    On that time, position buy is opened for a moment bouncing from Support to strong breakout.
    Every trader has the possibility of different initial position prices,
    -- because everyone's psychology (means : patience) is different.
    -- But they should remain in the same Support area.


    Result




  • Reference at :
    https://www.mql5.com/en/blogs/post/723155


The main conditions for true breakouts.
The following note must be considered before we take a trading position on a breakout opportunity

  1. The price has finished on the last wave -- bouncing from the current SR (1st test and 2nd test).

  2. True breakouts generally occur after the price tests the support as the lowest wave (for strong breakout),
    and finishes testing the resistance as the top wave (for strong breakdown)

  3. Generally the breakout momentum is not too strong if the wave is located in the middle 
    between the bottom and the top wave
    -- generally it happens to traders who are late in taking positions from the previous last wave, and
    -- sometimes they are still forced to enter the position even though it's too late.

  4. Pay attention to the SR closest to the breakout line.
    If it is too close below 40-50 pips, the breakouts can be delayed because
    it is still held back by the actual SR which protects the price from the breakout.

    Reference at:
    https://c.mql5.com/31/276/When_people_could_get_false_break.png


Thank you reading,
wish you all the best.


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