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Day Trading Breakout Strategy

Breakout strategy is traded by experienced traders to put a buy or sell trading position inside the strong trending market. Usually, this breakout strategy could be the initial level to big stock fluctuations, increasing in volatility and managing risk reward ration will enhance profitability and push down the risk. Within this article we will discuss about some strategies about day trading breakout system.

Breakout shows when the stock price breaks its support or resistance level.
This support or resistance level can be a horizontal line, trend line, fibonacci line. Just bare it on your mind, price level on our trading graph shows sentiments of the traders around the world and psychological.

If you are see of breakout trading, what do you think on your mind? Market price built high price, weekly high, monthly high? as we see, breakout system means so many thing for many traders. Why there are so many traders lose their money on day trading breakout?

For breakout strategy, we must caution for support and resistance levels on bigger period. You can using fibonacci indicator or pivot indicator, with this tools we can have many ideas to find where is the best level to open a trading position.

Posted in  on 11:14 by herman |   Edit