Part 6/9:
- Profit Taking: While you can set take-profit targets based on areas of support or resistance, a more adaptive approach may involve trailing your stop-loss as the trade moves in your favor.
The Breakout Strategy
The breakout strategy differs from bouncing. Here, a trader will open a position when the price breaches a trend line, indicating a potential reversal.
Execution: If the price breaks through an upward trend line, it may suggest a shift to a downtrend, prompting a short position.
Adjusting Risk Management: As with the bounce strategy, your stop-loss must be set at a level that would incur manageable losses if the trend fails to reverse.