look at this very market right here markets have been moving downward and then we see this very horizontal boundary you will say that this is a great breakout to trade you see Market break out right at this very point and after this very breakout right here what happened in the market market move a little bit upward okay and definitely come all the way to the downside if you trade this kind of breakout as well you are going to lose your money in this video I'm going to show you the kind of breakout you should trade practically on the chart and the three types of breakout that we have in the market that you need to pay attention to this video is going to guide you through the right breakout trading strategy that you should use right now so watch this video all the way to the very end consider supporting this channel by leaving a like for this video subscribe if you have not and turn on the Bell notification for more Forex videos like this one also check the channel for other Forex content we have three types of breakout in the market and the first one is breakout of trending Market let's say for example Market has been moving upward Market move upward come back down move upward come back down move upward come back down if you notice this Market breaks out how Market breaks out of this level of resistance push up or create a new high come back down retest move upward break out again on this level of resistance create a new high move upward come back down breakout on this level of resistance again so this is a breakout in a trending Market the same thing happen when the market is coming down okay breakout on the support level Market breakout on this support move back down create a new low breakout on this support level move back down create a new low break out on this support level again move back down and create a new low this is breakout on a trending Market either Market is moving upward or Market is coming back down as you can see in this very case the second type of breakout you need to pay attention to in the market if markets have a horizontal boundary let's say for example in this very case and we have another horizontal boundary around this very area right here and Market has been moving between this horizontal boundary let's say for example Market move upward come back to this very point of resistance move back to support move back up resistance and then come back down again hit support move back to resistance Market have possibility of coming back down move upward and break on this level of resistance and begin to move upward or the market can come back all the way from here to the downside to this very level of support and then break out on this level of support and begin to move all the way to the downside so this is break breakout of resistance support in a ranging Market the first one was in a trending Market this one is in the ranging market and the third type of breakout you need to pay attention to is what I called breakout of consolidation which is very very powerful let's say for example Market was moving upward okay and Market have created a new high and then move up again and then we see a consolidation a consolidating market is a market Market that is not moving up or down and the candles are moving side by side and it do form in this kind of formation this kind of breakout is very powerful because at this very area Market is building momentum and after every build up of momentum in the market mean that market is going to break out on either side and if the market break out in line with a trend like this then it mean that this Market is going to continue this movement to the upside in in line with this very upward Trend the same thing happened for a downtrend let's say for example if the market have been coming back down Market moved down retracement moved down and then it forms a consolidation right here if this Market break out to the downside with a bearish candle then it mean that there is a high possibility that this Market is going to continue this movement all the way to the downside why because every every time the market consolidate it mean that there is a build up of momentum at that particular region which mean Market have possibility of breaking here and start moving all the way to the downside this is very very important and this is a three types of breakout that we have in the market now among these three types of breakout that we have in the market the best breakout to trade and have 90% of the market moving in your direction is this kind of breakout of consolidation and that is the only breakout you should give the most priority on your chart if you see it on your chart that is the best breakout you should trade every other breakout should be neglected on your chart else you will have possibility of having this kind of fce breakout and Market is going to take you out and move in the opposite direction of your target or prediction and this is very important so the kind of breakout you should pay attention to and start trading right now is breakout of consolidation in the market and I'm going to show you right now on the chart practically where this kind of breakout occur and the powerful result you can get from this kind of breakout first of all before I show you an example you must understand what a consolidation is in the market if you look at this very market right here you see that the market is consolidating right here the market is moving side by side with with this candle moving side by side right at this point when you see this kind of movement in the market it mean that the market is consolidating and another example here is this very Point okay if you see the market moving side by side that is the candle moving side by side in this kind of formation it mean that the market is consolidating there is a build up of momentum at that very particular level and if it breaks out to either the downside or the up side that mean the market have high possibility 90% of the time of going in that very Direction so the first example here is right at this very point you see the market was consolidating and we can draw out this very line at this very Point okay of consolidation then what happened Market move upward from this very area and we see a typical breakout Market breaks out right here and then at this point of breakout since the market was moving upward we see the market move upward from here come back down move up again create a new high and then we see consolidation that mean Market is about to move upward after a breakout so this Market breaks out here what we need to do right here is to take a long position so we're going to place our trade right at this very point and our stop loss is slightly below this our level of support and we are going to enter a position to the upside and that should be a 1 to2 or 1 to 1. 5 R reward rate ratio so what happened afterward after this very breakout it discovered that the market begin to move all the way to the upside after this very breakout and give us a 1 to 1. 5 1 to2 risk reward ratio right here as you can see so this is the perfect kind of breakout you should trade in the market market breakout of consolidation is a perfect kind of breakout you should consider trading when trading break out we see that example right here Market was moving upward at this very Point create a new high Market come back down create a new high and then we see a consolidation right at this very point so Market consolidate at this very point you see the candle moving side by side right here okay Market was not actually coming down or moving upward in a horizontal boundary rather Market was consolidating so after this consolidation we want to see the market breakout so the first thing here is to wait for the market to break out and Market did break out with this very candle right at this point so after this very candle breaks out we want to take a position with a buy our stop loss have to be below this level of support and our entry have to be here and we look for 1 to 1.
5 and 1 to two RS reward ratio so after this breakout let's see what happened on the price action so if you look at it very well you discover that market begin to move downward a little bit and then from there Market begin to move upward in the predicted dire Direction so this is a very important breakout to trade if you trade this kind of breakout you should be in the right direction of the market the third example of breakout of consolidation is what we see right at this very point if you look at this very area you discover that the markets have been moving side by side so we see the candles here moving side by side the candles were not really moving down or up that mean the market have possibility of moving up or down aggressively so we can see this is an area of build off of momentum so if momentum is building up on this very particular resistance it mean that if it breaks upward the market is going to continue upward and if it breaks down the market is going to continue downward but in this case we want to trade in line with the trend so since we want to trade in line with the trend we want to look at the market breakout on Resistance with a bullish candle and we see that happen right at this very point with this very bullish candle right here so Market breakout form a bullish candle that close above every other bullish candle right here so we want to take a trade right at this very point this is our entry right here and our stop loss have to be slightly below this level of support at this very point and we allow the trade to run so if you take this trade the market should be in your favor look at how the market move all the way to the upside and you should be in the least one to 1. 5 and one to2 risk reward ratio and you should meet your target with this kind of breakout so this is the kind of breakout you should consider trading on your price action when you see them on the chart this is another example of a breakout of consolidation in the downtrend market is coming back to the downside if you look at it Market moov back down from this point of important resistance come right to this very area and Market begin to consolidate right at this very Point Market was not moving up or down we see the candlesticks right here moving side by side so there is a consolidation happen right at this very point which mean a breakout downward in line with this very new trend is going to make the market to come back to the downside so we want to pay attention to Market breakout with a bearish candle and once that happen on the price action we want to take a sell position to the downside so what happened right here was Market move up a little bit and then we see a breakout right here with this very candle and afterward Market break out after the breakout what happened is Market begin to move all the way to the downside so our stop loss have to be slightly above this very level of resistance right here and our entry have to be at this very point and we look for 1 to 1.
