The Life Cycle of Markets | DailyFX: "The Breakout
Breakouts are one of the more difficult market conditions to master, as the accompanying price movements can be volatile, violent, and extremely costly if we find ourselves on the wrong side of the move. We covered how traders can approach this condition in-depth in the article, Trading the Break.
But breakouts emanate from ranges. In many cases, a piece of news or some type of fundamental driver will create enough supply or demand in a market so that the previously established range breaks; and when that happens the move can be massive.
Breakouts Come From Ranges, and Lead to New Trends"
'via Blog this'
