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5 rules for trading breakouts in Forex. How do you trade breakouts in forex? How can you prevent a false breakout? If we are trading breakouts in forex specifically there are some rules we need to follow to try to minimise the times that we get caught in fakeouts. Often when we try to force a breakout trade, that’s exactly when the market reverses and takes our stop out! So how do you do a trade breakout exactly? Is there any way to confirm a forex breakout?
How to Trade FX Breakouts
1. Volume increase on the break.
2. Not at the end of a move.
3. A news driver is better.
4. Any retest should be quick.
5. Higher timeframe trend on your side.
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