Learn A Profitable Forex Breakout Strategy You Can Use Right Now

Breakouts have always fascinated me and although at first they did not prove to be profitable I believed there must be an easy way to trade them, and there is.

There is a key to breakouts, that key is that they must be seen by enough traders and institutions to create volume so the breakout will be strong. How does this relate to us? It's quite simple. For example if we had a nice strong up trend on a chart and asked 10 different traders to draw a trend line that they believed if broken would result in a breakout you would more than likely end up with 10 different trend lines.

However if we asked the same 10 traders to identify a level of support/resistance with horizontal lines that if broken would result in a breakout all 10 traders would generally agree on the same area.

In my trading I found it to be far more reliable to plot key support/resistance areas using horizontal lines. As I said earlier these areas are watched by far more traders and result in less false breakouts.

If you want to succeed trading breakouts forget grand ideas of gaining 100's of pips on each trade, you need to come down to earth. Look to grab 5-10 pips and then finish for the day. You do not need any more than that to grow your account and eventually become exceedingly wealthy.

Breakouts are low risk trades to grab some quick pips, if it remotely looks like the trade is moving against you then close the trade. Remember your stop loss is there in case you can not close the trade, do not let your trades go that far into loss.