One of the oldest most reliable method of trading is trading Break-outs. Trading break-outs means executing trades after price breaks out from resistance and support levels. long trades are taken after a confirmed break upwards from a resistance level, and short trades are taken after a confirmed break downwards from support levels. There is a popular group of traders who have successfully made millions trading this system, they are called the Turtles.
The Turtle Experiment
In the early 1980s, a famous commodity trader called Richard Dennis had a bet with his friend William Eckhardt. Richard Dennis bet that anyone could be taught to trade profitably, provided the person being taught adhered strictly to the system. William Eckhardt believed that trading required some natural skill, some kind of sixth sense, that instinct more than skill was what separated the legendary traders from the rest of the pack. he argued that it was this gift or instinct that made Richard Dennis such a successful commodity trader.
Richard Dennis immediately set out to get a team of novice traders, he placed an ad in the papers requesting for applications from anyone interested in joining his trading firm…