3 Tips for Trading Breakouts

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With the holiday coming tomorrow, I wanted to write a short price action article with 3 quick, but highly useful tips for trading breakouts.  If you can add these to your price action toolbox when trading breakouts, you can increase your success rate significantly when trading them.

 

1) Time of the Day

One of the key components to a successful breakout is volatility.  When you have greater volatility, you have more orders/players behind the market and therefore increase the probability the breakout bar will have more force behind it. This helps the breakout bar to take out more stops and push the market further in the breakout direction.

But, volatility fluctuates tremendously throughout the day.  Statistical analysis has pointed …

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