ðEducation content - When can we confirm a real breakout?
Hello trading friends,
This is a ðEducation content, we did use BTC as an example trend.
â To give this example there is nothing better to show the real chart as now.
ðYou have also a rule in trading that is called the 50% return of the last trend line, it's not always working, but most time this rule is working fine for more than 70%.
âąTo explain this trend. it means when a price Chart breakout - we check the last trend pullback from the last trend line with more than 50% to the last trend line below if this is the case, then there is a high chance we have here the first confirmation of the fake trend.
â Small explanation
Price breakout to 34K to 35500 with last trend 1H candle, we should hold the 50% range between the start of increase to above trend. if the price breakdown is more than 50% back to the last trend line we could see the first signal of further breakdown trend.
â of course, the time frame will confirm or this is a real trend or not as there is a need for a second trend shows in 80% of the time the first signal for break downtrend or uptrend - it can work 2 sides. and that's why the 50% rule is very important for real breakout or fake trends.
ðwe did add a real chart of BTC and you can see in this chart example all the trends that could make it a fake trend but not happen, so for this reason it did confirm and increase further. ðfor example, if the trend did choose and follow the red trend lines on the picture, then it could be a fake trend, and again this is not happened, because of the time frame and 50% rule confirmation.
ðŊBreakouts are great to follow and show good PNL, it called also the speed scalps.
Have a great day.
This is a ðEducation content, we did use BTC as an example trend.
â To give this example there is nothing better to show the real chart as now.
ðYou have also a rule in trading that is called the 50% return of the last trend line, it's not always working, but most time this rule is working fine for more than 70%.
âąTo explain this trend. it means when a price Chart breakout - we check the last trend pullback from the last trend line with more than 50% to the last trend line below if this is the case, then there is a high chance we have here the first confirmation of the fake trend.
â Small explanation
Price breakout to 34K to 35500 with last trend 1H candle, we should hold the 50% range between the start of increase to above trend. if the price breakdown is more than 50% back to the last trend line we could see the first signal of further breakdown trend.
â of course, the time frame will confirm or this is a real trend or not as there is a need for a second trend shows in 80% of the time the first signal for break downtrend or uptrend - it can work 2 sides. and that's why the 50% rule is very important for real breakout or fake trends.
ðwe did add a real chart of BTC and you can see in this chart example all the trends that could make it a fake trend but not happen, so for this reason it did confirm and increase further. ðfor example, if the trend did choose and follow the red trend lines on the picture, then it could be a fake trend, and again this is not happened, because of the time frame and 50% rule confirmation.
ðŊBreakouts are great to follow and show good PNL, it called also the speed scalps.
Have a great day.
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