Trading price consolidation breakouts is one of the most popular methods of technical trading. When a market makes an initial move from a current area of value, or supply-demand equilibrium, it is tempting to jump on-board with the goal of realizing a significant price move. When the breakout occurs from a relatively lengthy period of price consolidation or through a key support/resistance level, then the breakout trade becomes even more compelling.rnBreakout trading is as old as trading itself. It was reported that the original Turtle Traders (the famous experiment about developing new traders conducted by commodity traders Richard Dennis and William Eckhardt) utilized a channel breakout technique across a variety of markets. The contemporary trader hears much about identifying price consolidations, or "squeezes," and trading off them.
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