Preschool>= Lesson Status ?
Kindergarten>= Lesson Status ?
Elementary>= Lesson Status ?
Grade 1 Support and Resistance Levels
Grade 2 Japanese Candlesticks
Grade 3 Fibonacci
Grade 4 Moving Averages
Grade 5 Common Chart Indicators
Middle School>= Lesson Status ?
Grade 7 Important Chart Patterns
Grade 8 Pivot Points
Summer School>= Lesson Status ?
High School>= Lesson Status ?
Grade 9 Trading Divergences
Grade 10 Market Environment
Grade 11 Trading Breakouts and Fakeouts
Grade 12 Fundamental Analysis
Grade 13 Currency Crosses
- What is a Currency Cross Pair?
- Crosses Present More Trading Opportunities
- Cleaner Trends and Ranges
- Taking Advantage of Interest Rate Differential
- Obscure Crosses
- Planning Around News and Fundamentals
- Creating Synthetic Pairs
- Euro and Yen Crosses
- How to Use Crosses to Trade the Majors
- How Cross Currency Pairs Affect Dollar Pairs
- Summary: Currency Crosses
Grade 14 Multiple Time Frame Analysis
Undergraduate>= Lesson Status ?
- Why Keep a Trade Journal?
- Benefits of Keeping a Journal
- What Should You Record in Your Journal?
- Potential Trading Area
- Entry Trigger
- Position Sizing
- Trade Management Rules
- Trade Retrospective
- Trading Journal Statistics
- Reviewing Your Trading Journal
- Difficulties of Keeping a Trade Journal
- Summary: Keeping a Trade Journal
Graduation>= Lesson Status ?
- Which Trading Style is Best for You?
- Which Currencies Should You Trade?
- What is Your Level of Trading Experience?
- Should You Be a Discretionary, Mechanical, or Hybrid Trader?
- What Kind of Mechanical System Suits Your Personality?
- What is Your Attitude Towards Risk?
- What Kind of Stop Suits Your Trading Style?
Breakouts are popular among traders.
It makes sense right?
When price finally "breaks" out of that support or resistance level, one would expect price to keep moving in the same direction of the break. There must have been enough momentum building up in order for price to have broken out of the level, right?
It's time to hop aboard that train. It's all smooth sailing now. All you have to do is just wait for it...
Yes, wait for it...
Wait for it... Just a few more moments... To see price inch one direction... Then suddenly move miles in the opposite direction!
Huh?!? What the heck?! What happened to "the bread and butter and the end of world hunger" strategy?
End of story: You are left eating ketchup packets and crackers like Tom Hanks in The Terminal.
One thing you should remember to note about support and resistance levels is that they are areas in which a predictable price response can be expected.
Support levels are areas where buying pressure is just enough to overcome selling pressure and halt or reverse a downtrend.
A strong support level is more likely to hold up even if price breaks the support level and it provides traders a good buying opportunity.
Resistance levels are just like support levels but work in the opposite way. They tend to halt or even reverse uptrends.
Resistance levels are areas in which selling pressure is just enough to overcome buying pressure and force price back down.
Strong resistance levels are more like to hold up even if price breaks the resistance level and it provides traders a good selling opportunity.
In the next section, we will dive deeper into fakeouts and discuss why we should trade them and how to profit off them.
It's not enough learning about breakout strategies because there will be times that breakouts fail. We have to know what to do in case of fake outs.
This is part of your Jedi forex training. To be a Jedi master, you must be able to master fakeouts.
Are you up for it?
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- Trading Breakouts
- Ways to Measure Volatility
- Types of Breakouts
- Spotting Breakouts
- Measuring the Strength of the Breakout
- Trading Fakeouts
- Fade the Breakout
- How to Trade Fakeouts
- Summary: Trading Breakouts and Fakeouts