Tips to avoid false breakout

 

Tips to avoid Breakout Traps

·        Monitor Volume: Always check the volume accompanying a breakout. High volume is a good indicator of a genuine breakout.

·        Wait for Confirmation (Pull Back): Instead of entering a trade immediately, wait for the price to hold above or below the breakout level for a few minutes.

·        Use Technical Indicators: Combine breakouts with other indicators like Moving Averages or RSI to confirm the trend.

Avoiding false breakouts in intraday option trading can be challenging, but there are several strategies and techniques you can use to minimize the risk.

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