Sentences with phrase «creating false breakouts»
Last Friday's bearish reversal completely wiped out Wednesday's (Fed day) strong advance, thereby creating false breakouts to new highs in both the S&P 500 and Dow Jones.
http://www.morpheustrading.com/ Not exact matches
Furthermore, false breakout entries enable short - term swing traders to have a clearly defined stop price below the low of the pullback, which creates a very positive reward - risk ratio for the setup.
A few false breakouts and shakeouts along the way washes out the weak hands, which creates demand at higher prices because those who sold are forced to buy back in or miss the next move higher.