Thursday, October 31, 2013

802.52 - Contrarian

Something I learnt from reading Nial Fuller's website today, Price Action strategies are mainly used for contrary trades. Meaning the opposite of breakouts.

I think that is what the Naked Forex book taught as well. The logic is simple. Breakout happen a lot less often than contrary trades. Price tend to bounce a few times away from support/resistance lines first before finally breaking through.

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