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How to Trade Pocket Option Using Breakout of Support & Resistance - Best Trading Strategy

 In the following, I will share a trading strategy on the Pocket Option Platform using a very simple analysis, namely, Support & Resistance. This method is the best trading strategy that is often used by traders. Recognizing support and resistance levels is a skill that every trader must master because support and resistance are one of the main indicators in technical analysis.

What is Support & Resistance?

Support is the line below the chart or the lower limit of the stock price. This support point can help us when we want to buy stocks.
While Resistance is the line above the chart or the upper limit of the stock price.

How to determine strong price momentum to get out of support & resistance levels

To determine the strong price momentum to get out of the support & resistance level, we need to determine the dominant trend first. Use a candle chart, we will know the trend is strong when the candle is large and two or more consecutive candles have the same color.

Another signal that the price may want to break through support or resistance is when the price fluctuates within a fairly limited range. Once everything is confirmed as such, it has enough strength to break out of support & resistance. But we have to be careful and careful with this one because the price often returns to the range for a moment and only then breaks through it.

For more details see the following example image below.

Support & Resistance

False signals in support & resistance and how to avoid them

False signals are a trader's nightmare because they often cost us money in trading. we can talk about a fake breakout when the price drops back into the range after crossing support & resistance.

To avoid losing or losing in a trade due to a false breakout, We need to carefully analyze the chart. Pay attention to which trend develops when the price reaches a strong support or resistance level.

What to do if it breaks the support & resistance level?

If the price breaks through the support & resistance, we can expect the trend to continue in the same direction. when the price breaks through the resistance and then returns with a strong move, we can try to join the sellers. Because it happens when large market participants want to sell high or buy low.

We need to identify support & resistance levels and act accordingly.
But it does take a lot of patience to master this skill.
Our goal, in this case, is to determine the right moment to enter the trade after the price breakout.

Learning is practice, so don't hesitate and open a Pocket option demo account There We can check for ourselves how price behaves after a breakout, when a false breakout occurs, and what to do next.

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