Hello traders, and welcome to our first tutorial! In this post, I will try to explain how you can identify a real breakout from a fake one.
What is a Breakout?
A breakout is a stock price moving outside a defined support or resistance level with increased volume.
The more important thing about a breakout is the volume behind it. When we are trying to measure the volume size before a breakout, sometimes it is severe, but not anymore. Our bot is sending signals every time the amount of volume is increasing or decreasing for a lot of pairs from exchanges like #Binance, #Bittrex, and #HitBtc, and we can use that information to identify the real breakout from the fake one.
Here is an example of how this works: $BCPT/BTC
We had a breakout at 0.00000221, and the price moved higher, followed by another breakout at 0.00000260. At this point, we got the buy signal from our bot, and if you take a look at the chart above, you will see that the price moved higher again.
BCPT View details:
Up signal on Binance
+4676%, buy volume increased by 12.66 BTC
+9.39% price increased, last is 0.00000262 BTC
Last hour: bought 16.10 BTC, sold 8.20 BTC
Last 24h: bought 13.35 BTC, sold 18.48 BTC
Last week: bought 54.47 BTC, sold 63.75 BTC
Market Cap: $1,790,237
BB LOW: 0.00000177
BB UP: 0.00000300
Where do you sell after buying?
Well, let me tell you the beauty of this bot. If you take a look at the end of the buy signal details, you will see BB LOW and BB UP ( this is the shortcut for Bollinger bands), and BB UP is our target at 0.00000300.
As you can see, the price moved even higher, but we are not here to catch the top and bottom of these markets (we were able to make a nice profit of 15,45%). We want to grow beautiful, slow, and steady.
The last thing I want to add is that this tool is potent if you are using it with other indicators, so do not use it alone!
We have a free trial for seven days if you want to give it a try, plus the site has more exciting trading stuff that can help you improve your strategy.
Stay tuned for more tips and trading ideas!
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