Trading Discussion Before You Trade a Downward Price Breakout

[theolove2021]

When trading a downward price breakout, these are the steps to follow:

-Ensure it’s a downtrend

-Wait for the price to close below the corresponding structure — support level, trend line or any other

-Confirm the RSI is below the 50 level

-You can go short if everything aligns and a stop loss above the preceding swing high

-Ride the trend with a trailing stop if you want or put a profit target accordingly

To your success
Theophilus S.

 

[otunbasegit]

Thanks for this. What will be the best combination of indicators for identifying the trend?

 

[Setho]

I kind of love the street setup very well. This is because from the chat you can see that it is clearly bearish on the dominant trend and then when the breakout happens reassure that it is a trend continuation and you will not have to worry so much about fake breakout.

 

[Ivo Zetticci]

I trade not more than two pairs because trading in more pairs consumes a trader’s equity. Try to pick up an ECN broker because this type of brokers allows traders with advanced technology. With FXOpulence broker, you will face no such issues.