Transitional exam on Breakouts and Fakeouts

A symmetrical triangle suggests a breakout in which direction?

Bullish

Bearish

Either direction bro

Where are potential fakeouts usually found?

At the price action of exotic pairs

At supports and resistance levels

Inside channel patterns

Which of the following is a good tool to confirm a breakout?

AUD

RSI

KFC...

CPI

Why do breakouts fail?

Wys, breakouts don't fail!

A smart minority with bigger position sizes is making money off the majority

Many traders pushed the wrong buttons in their haste to jump in the breakout

How do you fade trendline breaks?

Jumps in when price pops back inside

You don't

Jump in when trendline is broken on a strong momentum

What occurs when price breaks an important level, but doesn't continue moving in the same direction?

Market irrationality

False Breakout

Indicator failure

A ______ breakout is the reversal of price action after breaking consolidation.

Consolidation

Consultation

Reverberation

Reversal

If MACD begins to decrease even when the trend is continuing...

There's a good chance that momentum is also decreasing and the trend could reverse

There's something wrong with your parameters

There's a good chance that the trend will continue

Fading breakouts get better results in what type of market?

Range-bound market

Trending Market

Supermarket

______ are generally bullish patterns that signal a breakout to the upside.

Descending Channels

Ascending Triangles

Symmetrical Triangles

Which strategy tends to work well when trading breakouts?

Jump in when volatility is high

Jump in when volatility is low

Jump in without placing a stop loss

True or False: Volatility is on the rise when Bollinger Bands contract.

True

False

ION KNOW DAMN BRAH

What occurs when price starts to trade outside of a recent consolidation or trading range?

Breakout

Fakeout

Breakup

Baby momma's Break Dancing

Why do false breakouts occur with the head and shoulders pattern?

Traders wrongly label the head and shoulders

Because many traders who have noticed this formation usually put their stop loss very near the neckline.

Because Baby Momma's Dramas make the market fails

When ATR is falling...

Volatility is increasing

My crazy Baby Momma is singing

Volatility is decreasing

How do you fade a breakout?

You don't

Trade the opposite direction of the breakout

Trade the direction of the breakout

Which of the following is NOT a good measure of volatility?

Moving averages

Fibonacci Tools

Bollinger Bands

Transitional exam on Breakouts and Fakeouts

More Quizzes