Hello,
I'm planning on doing some tests on this at the weekend, but for now I'm looking to hear other people's ideas. What are your methods for avoiding 'fakeouts' if you still want to trade breakouts?
For long-term trading systems I often look for two breakouts in a row.
Edited -
If anyone is interested, I've found that 'fakeouts' and reversals are more likely to occur at certain times of the day, see http://www.myforexdot.org.uk/day-trading-times.html for example, the GBP/USD is likely to reverse after the London market closes.
I'm planning on doing some tests on this at the weekend, but for now I'm looking to hear other people's ideas. What are your methods for avoiding 'fakeouts' if you still want to trade breakouts?
For long-term trading systems I often look for two breakouts in a row.
Edited -
If anyone is interested, I've found that 'fakeouts' and reversals are more likely to occur at certain times of the day, see http://www.myforexdot.org.uk/day-trading-times.html for example, the GBP/USD is likely to reverse after the London market closes.