Master these highly profitable Candlestick Patterns with this 82 page PDF FREE Candlestick Guide. Download these Swing Trading plus the Forex Profit Accelerator End of Day Trading Kit FREE. Get this Magic Breakout Trading Forex Strategy eBook FREE. Breakout trading is highly profitable if done correctly. The beauty of breakout trading lies in the fact that if you are right about the breakout, you can rake in a huge pile of pips in just about a matter of few minutes. But the problem is most of the time there are false breakouts and most of the traders can’t distinguish between a false breakout from true breakout.
You see, in case of a false breakout, price action is soon going to retrace itself. But in case of a true breakout price action never retraces itself. So, if you mistake a false breakout for a true breakout, you are going to lose yur shirt soon in the market.
Precisely because of this reason, most traders shy away from trading breakouts. But not Tim Trush and Julie Lavrine. They have been trading breakouts highly successfully. Infact, this Magic Breakout Forex Strategy FREE eBook is a gift from them.
Over the years, both Tim and Julie perfected their breakout trading strategies. Now, many momentum traders place a buy stop order at the significant high of the price aciton if a breakout on the high side is being anticipated. Similarly, in case of a breakout on the low side, many would like to place a sell stop order.
This way, if the breakout does take place, the price action will shoot up or down with high momentum dependingon whether it is a breakout on the high side or a breakout on the down side. The buy stop or the sell stop order will ensure that the order is filled in case of a breakout but is not filled in case of a breakout not taking place.
Sounds pretty sweet! Huh! But the problem is in case of a false breakout, price action is going to retrace itself and return to where it was before turning the short term gain into a huge loss. So, you can see, breakout trading can only be profitable if you know how to distinguish between a false from the true breakout.
You wil have to master certain chart patterns like the double top or the double bottom patterns that are often used by experienced traders to distinguish between the false from the true breakouts. You can also use ascending and descending triangles. Whatever, mastering these chart patterns is not easy for inexperienced traders who want to enjoy making hundreds of pips in a matter of few minutes. You see, even experienced traders can be wrong when identifying these chart patterns.
Meet Julie Lavrine. She has been trading the financial markets for over ten years and has been experimenting with different technical analysis tools. She has come up with an ingenious method of distinguishing a true breakout from a false breakout. She uses CCI Indicator. Yes, I am talking about the Channel Commodity Index Indicator.
If you have been trading for sometime, you must be familiar with the CCI Indicator. If not, you can easily master it in a few days time. Now, there are two lines on the CCI chrt. +100 and -100. When price action breaks above the +100 line, it is a signal to go long. And when the price action breaks the -100 line in the down direction, it is a signal to go short. These signals give you the advantage of acting before the crowd.
Julie and Tim both perfected this breakout trading strategy and used it highly profitably turning there $1,000 into a fortune. In fact, one of their students made a million dollars and his return was 5400% using this strategy!