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Since these breaks are uncommon (and usually unexpected) markets are typically caught off-guard by the price activity and, as a result, volatility will generally increase. Another reason for this increase is that traders with range-trading strategies often have stops just outside the commonly defined range and, when the breakout triggers these stops, prices have the potential forex quotes investing com gain momentum in the direction of the break. While breakouts can occur on any timeframe those seen on the longer-term charts tend to create more significant changes in momentum and volatility, and hence more profit potential, forex quotes investing com. The same rules apply on any chart timeframe but breakouts seen on a daily or monthly basis generally have a higher probability of showing a true change in underlying trends (which suggests a higher level of validity in the breakout price movement).

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Forex quotes investing com

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