Forex | 1 year ago
As we all know that market is consolidating 75% of the time. A consolidated market is little risky to trade, as the risk to reward ratio is not much profitable. If you will notice it clearly, market consolidate or range between support and resistance levels. A breakout occurs when the market breaks these support or resistance levels to form new highs or new lows. Making use of this breakout while trading is referred as Breakout trading strategy.
If you look at the charts of daily or hourly time frames, you can spot the breakout easily. A breakout occurs at the time of starting a new trend, whether it is uptrend or it is down trend. You can use some simple indicators to confirm whether this breakout will result into a new trend or not. Trade Global Market provides almost 89 different instruments to trade in financial market. You can use this strategy effectively with Trade Global Market Platforms. Trade Global Market provides its clients with the industry’s most reputable, award winning and sought-after Forex and CFD platforms – the Meta trader 4 (MT4).
Recognizing a trade signal is very important while trading. This helps you calculate your risk to reward ratio. No matter what strategies you use, always use them with proper risk management. So how to recognize a breakout trading signal? After observing the chart if you find out that the price breaks out above the 20-day highest level then consider it as a buy signal. Similarly, when the price breaks out below the 20-day low level then consider this as a sell signal.
Once you are sure about the signal, go ahead and place an order with a proper stop loss. Keep an eye on the price movement and wait for your order to reach the take profit price level or hit the stop loss. Once the market starts moving in your take profit price level direction, then move your stop loss slowly to ride the profit. Many traders do not know the art of riding a profitable trade. By riding a profitable trade, you can make the most out of an opportunity you have captured.
To learn more about various other profitable trading strategies be sure to bookmark our blog and continue visiting. If you are new in the market to trade 1st go and register yourself for free trading training. Start practice with live market of best forex broker (TGM). Trade Global Market offer tight spreads, low-cost trading and deep liquidity prices. You can open a real account at Trade Global Market within few minutes and start trading instantaneously. The minimum deposit needed to trade is just $100 with this minimum deposit you get all the benefits of the best trading platform which includes 100 plus indicators and charting systems. So what are you waiting for? Go ahead and apply this strategy on your trade. Do not forget to share your experience in the comment section.