Lesson # 3 (False Breakout & how to avoid them)
Hello Steemians
Today is Saturday and you people know, we have lesson class every Saturday.
If you missed lession # 1, you can check here
https://steemit.com/bitcoin/@salahuddin2004/lesson-1
If you missed lession # 2, you can check here
https://steemit.com/bitcoin/@salahuddin2004/lesson-2
Today I would like to talk about (False Breakout & how to avoid them)
False Breakout: When the price moves for short period of time
above or below a key support or resistance level, but later
it fall back to its original point from where it started.
Example 2
How to avoid False Breakout?
This is a secret I am telling you.
Usually when breakout occurs I do not trade immediately.
I will wait for next 2 or 3 days then i trade.
To understand more clearly
Have a look at this
Lession # 4 will be on 10.03.2018
You would love to know that everyone can use this technique.
If you have any question kindly mention it in comment.
If you find it hard in practising it let me know in comment, I will go through it.
Resteem this post to help new investors.
Thanks
great work master @salahuddin2004
Thank you dear @asiahajranajma
Hi master @salahuddin2004,
Maybe it's a trick to see if we pay attention ...
But on the first picture I see a false breakdown where you write a false breakout.
Dear @buttercups
That's good you paying too much attention
you will learn soon.
Good stuff! Thanks for educating us.
Thank you sir @khamen
Love your lessons very precisely understandable
Keep up the good work and never give up
Thank you very much! Very helpful!
Thank you, teacher! It is very kind of you to help us become better traders. I do have one question though: you have said that it is best to wait for 2-3 days and then enter a trade - otherwise the breakout might be false. However, would this be applicable to trading cryptocurrencies as they tend to have a very volatile and bouncy nature? Sometimes 2-3 days could mean that you have missed the train and you might enter right before a correction starts. Wouldn't this advise be more suitable for stocks and commodities (before I started buying gold 3 years ago I was told that gold was volatile, but ..man, compared to bitcoin and other cryptos, gold's price is ..boring)? Cheers, my friend!
@humblestudent i think you are right but it depends on the time frame. if you are looking bitcoin price at 1D then you probably wont missed the train. But if you are looking at 30M you probably yes