Originally Posted by Technocrat
Hi again Ed,
I'm used to the term 'breakout' applied to range trading. How does it apply to trend trading? Are you referring to breaking out of a channel or do you mean horizontal support and resistance levels? Sorry if this is too basic, I'm still wet behind the ears and this stuff is pearls, so I don't want to get it wrong.
Thanx again.
Hi T,
Great point - try to think of it this way. Trends often pause and consolidate, and this creates support and resistance levels. So many times, when you are looking at a range-bound currency pair, it is actually range-bound within a longer term trend. Hope this helps!
Ed
