The Breakout Trap: A Forex Trading Strategies
One of the most reliable setups in forex trading involves luring aggressive breakout buyers to chase session highs, only to witness them being caught on the wrong side of the trade.
How It Works:
Traders eagerly enter new long positions once the price surpasses the Asia high, leading to a surge in open interest. However, the price then quickly reverses, targeting the lows set during the London trading session.
Unfortunately, the dream of a continuous upward trend is often shattered by the harsh reality of market liquidity.
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