If a currency pair has been trading for some time within a tight range, then when it does breakout it usually progresses in its new direction for some time.
Trader Level: Beginner
Risk Level: Low
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In the Breakout Strategy you are looking for a currency pair that has been trading within a tight trading range for an extensive time period.
A trading range is clearly delineated by a ceiling and a floor, the ceiling being the highest price that the asset trades within the trading range and the floor being the lowest price. When the price bounces against its ceiling or floor a number of times at some point it finally breaks
Below is a graphical illustration of a Trading Range
A clean breakout should consequently be viewed as a strong signal to initiate a 60 Second Binary Options trade. If the breakout occurs below the floor initiate a Put option; if the breakout occurs above the ceiling initiate a Call option.
Below is a graphical illustration of a clean breakout: