How to spot a fake break out?
Have you ever lost your hard-earned money over a fake breakout?
A false breakout refers to a substantial movement beyond a market's usual support or resistance levels that proves to be short-lived, leading to its eventual failure.
Such occurrences can result in costly errors for traders who mistakenly interpret it as a genuine breakout and enter long positions, only to see the momentum dissipate shortly thereafter.
We know how frustrating fake breakouts can be...
...which is why we're here to share a killer tip that can help you avoid fake breakouts and seize the high rewards of dependable breakouts.
We've discovered that volume clusters hold the key to identifying authentic breakouts with precision.
When you spot a potential breakout during a downtrend and the price interrupts the above trendline,
If there's no spike in the buy volume cluster during the same period, it's likely a FAKE breakout.
Confirm it by observing if the subsequent sell volume cluster exceeds the mentioned buy volume cluster.
In such cases, the market is continuing in a downtrend.
On the other hand, for a highly reliable breakout during an uptrend,...
...watch for the price interrupting the above or below trendline while also witnessing a spike in the buy or sell volume cluster in the same range.
This is where your trading game transforms!
And with W-Wave Volume Pro - a robust volume indicator from ninZa.co, you can now enter and exit the market with confidence, knowing you've identified highly-reliable breakouts that can lead to substantial rewards. Watch the video for more information.