Breakout Strategy M5 Charts


Breakouts are probably the most difficult part of price action trading. You should have a good market knowledge and understand target levels. When you trade a Binary Options breakout Setup you will also need the right expiry because choosing a too long expiry and the market price can fall back and expire the trade out of the money. Choosing a too short expiry and the market Price can bounce back to your entry point before getting up. You should use previous price action history to find the optimal expiry. In this trade we simply drew a resistance line but a trendline could have been used as well. After that we waited for this resistance to be broken. The fact that the market price had earlier tried some times to break this same target was a good indication that this time this could be the actual break. Indeed after a few minutes the market price broke and we could confirm that using the M1 charts. We entered shortly after the first candle closed above the resistance line in order to not lose too much leverage. We picked a 10 minute expiry towards the next target. In this case the market price got even above that target that was even better for us. Before a breakout on the M5 charts you usually will see that stochastic oscillator is overbought (when it is a call breakout) on the M5 and sometimes even M15 or M30. But some other timeframes are oversold. This indicates divergence and sometimes it means that the market price could break out and continue its direction.