What is Breakout in Binary Options Trading? (Ask any questions by sending direct message to this page https://www.facebook.com/…

What is Breakout in Binary Options Trading?

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Breakouts occur after periods of price inactivity. They occur when traders get a hint of an impending market event that will affect the value of an underlying asset, so they take position in order to make money from such movements.

Putting it simply, A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support.

๐Ÿ’ฒโœ”Is breakout trading profitable?
You have huge profit potential if the breakout occurs to the upside since you got in at a way better price than anyone who bought at the breakout price. Since you’re buying at the bottom of the range, your stop-loss can be placed just below your entry, so the risk is minimal.

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๐Ÿ’ฒโœ”What is the best breakout indicator?

Relative Strength Index (RSI)

RSI is another momentum indicator that is useful for confirming reversal breakouts. Basically, this indicator tells us the changes between higher and lower closing prices for a given period of time.

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