Breakout trading: how do you filter false breaks?
Breakouts promise the start of a move and deliver false breaks most of the time. The difference between profitable and unprofitable breakout trading is entirely in the filters: volume context, session, retests and how you treat the failed break.
What's your filter stack?
- the conditions a level needs before you'll trade its break
- how you handle the classic stop-hunt-and-reverse
- whether you enter on the break or wait for the retest
The support and resistance guide sets the foundation.
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