Hey All, Timon Weller here..
In a previous video I suggested that I was not much of breakout trader, since then I have received numerous emails asking me to share how I do trade them when I do decide to use them as trade entry.
So here is my video on the subject below for your enjoyment.
Before you start watching, let me first describe what is a breakout. A breakout is when price breaks beyond a level of support or resistance in the form of a trend line of horizontal trend line break and in an area where you would expect either the price to break much higher or much lower.
A breakout trader in general will place orders above or below these areas because they are trying to capture the move beyond a particular range to the high of the next range or beyond.
By the way, if you are wondering what method is the highest probability out of the two, the trend line breakout or the support resistance breakout, well I have been over the figures and trend line breakouts are much more effective by far..
While may seem like a great idea, there is more to it than just placing orders and if done wrong can easily get the trader into the worst trade situation possible. Basically put, a fake out, this is the opposite to a breakout and is when many traders do the opposite when a pair is breaking out, they sell or buy, but in particular it is where banks do most of there money making, so in order to trade this effectively you must first master where the best places are to buy and where you should not. This is key to the methods success.
Above Video – Sit back, relax and enjoy.. I hope you enjoy the Video, If you trade this style, let me know your thoughts below by commenting..