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I would like to know how one can determine if the breakout is legit or false. I have been caught plenty of times buying a false breakout just to be stopped out seconds after my entry.
Is there a way to know before hand if the breakout will be valid? I would also like to know trading strategies to play breakouts.
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You can try using Bollinger Bands. When they become narrow, there is a chance price will breakout in either direction.
Also the NR7 tactic. If the price range is minimum for the last 7 days, the breakout is likely to be real.