A False Breakout, How to Identify It?

[katya1 11]

Many who trade the breakthrough strategy would better understand is break real or false. If you see in advance false break, you can’t open a position, or play in the opposite direction.

The volume can show how the breakthrough may be present. The point is very simple. Extra volumes at the level of the break significantly increase the likelihood of truthful breakthrough.

Consider these examples:

[scarlettjhonson 1]

Investing in Forex is not a game, it is something serious and study, experience, patience and a lot of discipline. It can be a very profitable business if you are careful and never get greedy.

[landorra 3]

I pefer to consider how decisive the candle is when looking at the market sentiment at that exact moment. I think it's a more reliable source of information.

[Stan1 1]

Great info.

Would you say the SPX is experiencing a false breakout this week?

[landorra 3]

Yeah, I guess so! 🤣

[fxeconomist 11]

I trade only true breakouts, got some special technical indicator from one of Hotforex webinar mentors he shares it for free and basically it saves me a lot of time and efforts, as you don't need to concentrate on prices as before, the formula does it for you!

[zdo 20]

fxe,

old post ... but if you're still around, could you explain to us what a true breakout is?

thx

zdo

[fxeconomist 11]

I like to trade breakouts I use Hotforex platform for that with python integration, they provide platform with low latency where scalping is possible. 

[aimhi 10]

Does your python integration is supported for news trading as well, just wondering how it looks like!

[fxeconomist 11]

On 7/30/2021 at 12:01 AM, aimhi said:

Does your python integration is supported for news trading as well, just wondering how it looks like!

Yeah it works like a charm basically you just setup a parse bot that checks frequently the website around the time of release, like NFP report. Getting the figure and then comparing it with concensus in economic calendar you make decision buy or sell. It is then executed in MT5, thankfully it offers python bridge so you can connect to it python in 10 lines of code. 

[aimhi 10]

Thanks for elaboration i am also willing to learn coding just to code some EA however i can't spare much time to code maybe i can hire someone to do it for me.

[fxeconomist 11]

On 2/22/2022 at 8:06 PM, aimhi said:

Thanks for elaboration i am also willing to learn coding just to code some EA however i can't spare much time to code maybe i can hire someone to do it for me.

Yeah Hotforex is quote EA-friendly broker, welcomes scalping traders, nowadays not many brokers tolerate such type of traders. 

[aimhi 10]

You might be right because many scalpers trades turned into hedging and then due to high leverage they ends up losing money and blaming others for their loses.

[fxeconomist 11]

On 4/5/2022 at 2:08 AM, aimhi said:

You might be right because many scalpers trades turned into hedging and then due to high leverage they ends up losing money and blaming others for their loses.

Yeah, locking positions is the worst thing that traders can do to limit risk. Unlocking positions usually end badly because at least you pay double costs at worst volatility doubles your loss.