Advanced technique #11 (True and False Trend Line Breakouts)
Submitted by Edward Revy on December 15, 2008 - 12:23.
When price breaks through a trend line, how can we tell whether it is a true or a false break?
Well, we can't tell or predict until we see it later on. But, we can analyze what price has been doing prior to this breakout in order to form our own opinion and bias, and either pay attention to the breakout or disregard it.
We can always go back and look at waves pattern, or simply, whether price was making Lower Lows (LL), Lower Highs(LH), Higher Highs (HH) etc..?
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hi, i am jatin. i not got meaning of your line 'The simplest and popular method is to wait till price returns back to test the strength of the broken trend line again' i mean we cant wait and if we wait so we might loss of large part of profit obtain through this strategy. And what sl and tp would you suggested for this strategy.
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