Breakout Strategy

According to this strategy you open a deal when the price breaks out the current level and continues its movement in the same direction. A deal should be opened after a candlestick body breaks out the level of support or resistance and a new candlestick moves in the same direction.


A procedure after a signal appearance:

1) The price chart has reached a support or resistance level;

2) Wait for appearance of the candlestick breaking out the level with its body and closing there;

3) Wait for appearance of a new candlestick moving in the breakout direction;

4) Trade online in the breakout direction after closing a confirming candlestick.

Buying a put after breakout of the support level

Buying a put after breakout of the descending trend channel

Buying a call after breakout of the descending trend line

Using a breakout strategy you should always have a signal confirmation as breakout can be false. A false breakout of the level appears when the first candlestick breaks the level and the second candlestick returns back to opening price of the first candlestick.


Aspects of the false breakout:

1) A candlestick has broken the level with its shade and closed inside the level;

2) A candlestick has been closed at the level or a bit outside and a new candlestick returned to the range inside the level.

False breakout of the support level

If after breakout a reversal or squat candlestick has appeared this breakout can be false. In this case you should wait for a candlestick moving in the breakout direction and trade online after its closing.


Company doesn't provide services to citizens and residents of Australia, Canada, EU Member States, Iceland, Iran, Israel, Liechtenstein, New Zealand, North Korea, Norway, Puerto Rico, Russia, Singapore, Sudan, Switzerland, UK, USA, and Yemen



Payment and Withdrawal methods
本網站所提供的操作可成為高風險等級的操作,其執行亦是有很高風險的。在購買的網站和服務提供的金融工具時,你可能會招致顯著的投資損失,甚至失去所有帳戶裡的資金。於有關本網站上提供的服務內,你將會授予有限的非專屬權利使用這網站包含的 IP ,只可作個人、非商業而不可轉讓用途。
© 2014–2023 ExpertOption