So what is a rally? What causes this rally? Many inexpericed traders often mistake a rally with a breakout. It is true that breakout rallies are difficult to identify by even experienced traders. Now, many traders just trade rallies. These rally traders are not frustrated trend traders, they are content with the limited profit potential of a rally and trade in accordance.
In actual reality, rally trading is short term trading having fixed price targets.
Many traders mistakenly trade these rallies in the expectation of a new uptrend developing as a result of the rally. How do you identify a rally? Experienced traders also use some rally search formulas.
How do you find breakout rallies? Breakout traders are always looking for new breakouts. But, the problem is how to identify a rally or as some call false breakout from a true breakout.
Related Post:
rally trading