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Introduction $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ + 1$ The Ba)ic) O% Breakout Trading$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ , 2$ The Ba)ic Breakout$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ +$ Fal)e Break Out) $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ . ,$ /ange Breakout *trategie) $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 0 -$ 1ey Point) To Con)ider 2hen Trading Breakout) $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 3 Conclu)ion $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ 10
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Introduction
$here are "any #ays in #hich you can trade the Foreign %xchange "ar&ets and a #ealth o! strategies and syste"s that can e used. All have the "ain o 'ective o! atte"pting to provide a consistent approach to "ar&ets that #ill e a le to deliver pro!its although the actual approach #hich is use "ay e very di!!erent. O! the "any approaches that can e used !or regular pro!it generation is the rea&out trading strategy.
Thi) trading )trategy re&ain) popular #ith trader) %or t#o &ain rea)on)$ The %ir)t i) that it o%%er) the potential to deli4er high pro%it)$ The )econd i) due to the %lexi5ility that thi) trading )tyle o%%er)$ Breakout) occur in all &arket6 not 7u)t Forex6 &aking the techni8ue) o% 5reakout trading uni4er)al$ They can al)o 5e u)ed in a #ide range o% &arket condition)$ They do not re8uire )trong trending &arket) to yield a pro%it and #ith the correct pro%it target) and )top le4el) applied6 can 5e #orth#hile )trategy to trade in 4olatile &arket)$ In thi) guide #e look at )o&e )i&ple application) o% 5reakout trading )trategie) and outline )o&e )i&ple rule) to %ollo# in order to &ake the &o)t o% thi) trading )trategy$ Phil Moore http!""###$london%orexopen$co&
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"onclusion
Capturing "oves is only hal! the e9uation #hich e9uates to a success!ul rea&out strategy. .! you #ant to ensure your strategy is pro!ita le in the long run you need to ac& this up #ith good "oney "anage"ent and ris& controls. (rea&out trading does not al#ays have to target the ig "oves. :ou can capture s"all pro!its !ro" a rea&. 4o#ever you should &eep in "ind the level o! ris& attached and &eep your stops tight. As #ith all !or"s o! trading it is the slo# and steady approach that #ill lead the to greatest gains in the long run. (iography $he London Forex Open "orning Forex trading syste" exploits rea&outs at the opening o! the London +ar&ets !ollo#ing the Asian "ar&et range. Find out "ore a out ho# you can pro!it !ro" trading rea&outs as part o! your trading strategy. http;))###.london!orexopen.co"