🚀 Breakout Trading Strategy Explained 📈
Looking to catch big market moves before they happen?
The Breakout Trading Strategy is designed to capitalize on strong price action when an asset breaks through key support or resistance levels.
✅ How it works:
1️⃣ Identify consolidation zones or chart patterns (triangles, flags, rectangles)
2️⃣ Wait for a breakout above resistance (bullish) or below support (bearish)
3️⃣ Confirm with volume or momentum indicators
4️⃣ Enter on the breakout candle close or retest
5️⃣ Use stop-loss just below/above the breakout zone
🎯 Best used in trending markets
⚠️ Avoid during low-volume or choppy conditions
🔧 Tools to help:
– Moving Averages
– Bollinger Bands
– RSI/MACD
– Volume spikes