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7 Simple Strategies of Highly Effective Traders by Alpesh B. Patel, Paresh H. Kiri

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Strategy 1. Breakout With Momentum

Introduction

Our first strategy is breakout with momentum.

Breakouts occur around key support or resistance areas that have existed over multiple time frames. The most successful are the ones that occur with increased or better than average volumes. Therefore, this strategy looks to exploit situations where breakouts take place and have considerable volume behind them – it looks to trade market momentum.

Here, we use our practical experience of trading these situations to give a new slant on the traditional textbook versions of how breakouts should be traded.

All you need to put this strategy into practice for yourself is charting software which displays a clear histogram of the volume. Most charting ...

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