Technical breakouts

On December 14, 2010 | By | In Scalping Pattern

Pattern Scalping Strategy

We can define technical breakouts as the cases in which a range breaks down without any previous or obvious reason. In the case of the news released traders know that they are under the possible effects of an unexpected argue that could affect to the trade market the whole day so they are prepared for it;  while with a technical breakout anyone could be catch unaware.

Technical breakouts are almost impossible to predict and sometimes also almost impossible to explain.

Ought to their unusual and sudden apparition scalpers should be much more conservative when scalping this pattern than in the case of scalping the news released. The main risk is to find a market that is up and suddenly goes down without warning; to avoid the chaos is recommend to trade with small sizes and stop-loss orders.

The key issue is to identify the phase of the range pattern- that could be up or down- and trade it in short periods of time applying the general rules of technical trading.

2 Responses to “Technical breakouts”

  1. [...] International Business Times (blog)EUR/JPY OutlookInternational Business Times (blog)We also have an educated scalping method we call Quick Trading. To get the discount or if you have any questions, please email tradesheet@propipper.com … View full post on EUR/JPY – Google Blog Search [...]

  2. lisahenry says:

    Nice blog! Most forex broker reviews will tell you a lot of how they feel about scalpers. This is because any wins by scalpers represents equal loss by brokers.

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