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
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.
- Reference at :
The main conditions for true breakouts.
The following note must be considered before we take a trading position on a breakout opportunity
- The price has finished on the last wave -- bouncing from the current SR (1st test and 2nd test).
- 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)
- 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.
- 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.
Thank you reading,
wish you all the best.