📈Education content - When can we confirm a real breakout?
Hello trading friends,
This is a 📈Education content, we did use BTC as an example trend.
✅To give this example there is nothing better to show the real chart as now.
💎You 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%.
⏱To 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.
✅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.
✅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.
📈we 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. 🚁for 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.
🎯Breakouts are great to follow and show good PNL, it called also the speed scalps.
Have a great day.
This is a 📈Education content, we did use BTC as an example trend.
✅To give this example there is nothing better to show the real chart as now.
💎You 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%.
⏱To 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.
✅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.
✅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.
📈we 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. 🚁for 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.
🎯Breakouts are great to follow and show good PNL, it called also the speed scalps.
Have a great day.
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