📌How to Avoid False Breakouts Using Volume and Indicators?
A Smart Beginner's Guide to Filtering Out Fake Signals
Many beginners fall victim to what is known as "false breakout" — the price breaks through a level and then quickly reverses, hitting the stop loss.
💡The solution? Use smart filtering tools:
📌Trading Volume (#Volume ):
Choose breakouts supported by high trading volume.
Breakout without volume = potential false breakout.
📌RSI Indicator:
Make sure the price is not in an overbought (buy) or oversold (sell) zone.
Entering with a balanced RSI gives you a better chance of success.
📌MACD Crossovers:
Your entry signal is stronger when it aligns with a positive crossover in MACD.
💭Pro Tip: Don’t rely on just one tool. Base your decision on the alignment of multiple indicators.
💡Next Lesson Title Teaser:
How to Use Time Frames to Identify the Best Entry Point?
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