Markets spend a lot of time ranging. Knowing how to spot and identify a successful breakout can help a trader find good trading opportunities and stay away from fake breakouts and low probability trades. There are a handful of clues and things to look for in a potential breakout that can signal whether a breakout is going to be successful or not. A tight range is typically the prelude to a new trend. During a long and narrow range, such as the one on the AUD/USD in the screenshot below, there is a lot of position building and trend-preparation going on inside. It is obvious that price touched the upper boundary many ... (full story)