Failed Breakouts strategies
16 May, 2020 | 20:00 - 22:00
Failed Breakouts strategies
16 May, 2020 | 20:00 - 22:00
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Ankit Chaudhary
Trader,
Mr. Ankit Chaudhary is associated with FLAME (Financial Literacy Agenda for Mass Empowerment), an initiative by India Infoline Ltd. to spread financial literacy across India.
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A Failed Breakout can be defined as a ‘deception’ by the market; a test of a level that results in a break of that level but the market then retracts and does not sustain itself above that level Breakouts commonly occur at designated resistance and support trend lines.
A Failed breakout occurs when a price moves through an identified level of support or resistance but does not have enough momentum to maintain its direction. This is the worst case scenario for a breakout trader who enters in a trade as soon as price breaks out from a pattern.