Breakouts

15.2 Why Trade Breakouts? – QUIZ

1. A breakout above a 50-day high means that: *

The trade should be held for 50 days

The price is trading at its lowest in 50 days

The price is trading at its highest in 50 days

The price is going sideways

2. What best describes the positive trading “edge” shown by recent 50-day breakouts? *

The price is more likely to travel in the direction of the break out the next day

The price is more likely to travel further in the direction of the break out than against it the next day

The price is more likely to travel further in the direction of the break out than against it over the next 8 days

The price is more likely to close up the next day

3. Is breakout trading a good “set and forget” strategy? *

Yes

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