The Price Breakout Strategy for Forex

There is a multitude of reference to price break-outs. For what it is worth they can be viewed as price continuations or price reversals.

If price has already established a trend then the break-out is a price movement that punctures support or resistance in the direction of the prevailing trend. Since this price behavior is typical of price following a consolidation pattern then a separate category for this price movement event becomes unnecessary as a Forex trading strategy, Equities strategy or Futures strategy.

currency-figures-trade-boardPrice often consolidates after price movement of one direction or the other. A longer price movement that leads to a price reversal forms a price base that is recognized by its price range pattern. While price is ranging there is a building demand that is increasing in the opposite price direction of the most recent trend or as supply decreases it reduces what had fueled that most recent trend direction. A sudden price movement from the price range base is often referenced as a break-out. The price movement can be analyzed as a price reversal and again eliminates the need for a price break-out categorization.

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