This week’s strategy video covers a very important scenario that all traders come across – trend breakouts that don’t turn out as expected.
Textbooks say that if a trendline breaks, then that’s it – another direction is certain. David explains why this isn’t necessarily true and he gives us illustrations and examples of the so-called false breakouts and shows you how to identify them.
Making the distinction between trend reversals and false breakouts can make all the difference in your portfolio as they usually happen at critical levels. These can be where support and resistance are determined or the boundaries of trend channels making it harder for traders to determine what’s next. This video will help you make that judgement with more knowledge about the different possible scenarios.
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.