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