How To Navigate: Breakouts with Tools, Indicators & StrategyHaving a Clear and Precise understanding of whether you're dealing with a Breakout or False Breakout can help you:
1) Find potentially profitable opportunities
&
2) Avoid making risky investment moves!
Also knowing how to Confirm Trend Change can:
1) Rise probability of profitable trades
&
2) Limit the total # taken!
So today, I lay out the tools, indicators and tips I use to visualize and to make a decision!
Examples:
COINBASE:XLMUSD & BITSTAMP:XRPUSD
Tools:
- Trendline
- Parallel Channel
- Rectangle
Indicators:
- Volume
- RSI
- "True or False" Formula : Close + 20-25% Break + 5-6 Days Outside of Break = Breakout