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Breakout Trader

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Breakout Trader
A trader that makes investment decisions based on technical indicators in order to make a large return. The breakout trader may use a variety of indicators, but often relies on support and resistance levels. When a security rises above its resistance level, the breakout trader buys it because it is highly likely that the security will continue to rise. Thus, the trader relies on "break out" prices to amass an abnormal return.


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Each time there is a new intraday or daily high on the major indexes there is a renewed bullishness created as breakout traders and novice traders buy into the market hoping for the next surge in price.
It had increasingly become a battle of patience for breakout traders who have waited for the US currency to break below key levels.
However, both range bound traders and breakout traders also use pivot points in the Forex market.
 
 
 
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