Breakouts can make you money fast —
Or destroy your capital just as quickly.
Let’s show you how to only trade the real ones 💡
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📖 Step 1: Understand What a Breakout Really Is
A real breakout =
Price breaks a key level (support/resistance)
• Closes beyond it
• Stays above it on the retest
What it’s NOT:
❌ Just a wick above resistance
❌ A quick green candle with no follow-through
❌ Breaking out on low volume
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📏 Step 2: Mark a Clean Level
Use a horizontal line at:
• Previous highs or lows
• Range boundaries
• Supply/demand zones
Make sure the level has:
✅ Multiple touches
✅ Rejections in the past
✅ Clear importance to the market
This gives your breakout context 🔍
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🔍 Step 3: Wait for the Break + Close
A real breakout requires a candle close above the key level.
Checklist:
✅ 15M or 1H candle CLOSES above
✅ Followed by a volume spike
✅ Price doesn’t instantly wick back below
If it fails to close? It’s likely a fakeout 😬
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🧪 Step 4: The Retest = Your Golden Entry
Don’t rush in.
Wait for price to come back and retest the breakout zone.
What to look for on retest:
• Bullish wick or engulfing candle
• Support holds the line
• Volume comes in again
→ Now you can enter with low risk 👇
• SL = Just below the breakout zone
• TP = 1.5x to 3x your risk (adjust to next resistance)
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📈 Real Breakout Example Strategy:
1. Mark resistance zone (e.g. $0.25)
2. Wait for 1H candle to close above it
3. Watch for a retest around $0.25
4. Enter LONG on bounce confirmation
5. SL = $0.245 | TP1 = $0.27 | TP2 = $0.29
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🧠 Final Tips to Avoid Fakeouts
❌ Don’t trade breakouts in choppy, low-volume markets
❌ Avoid trading right before major news
✅ Combine breakouts with trend direction (breakout in direction of trend = stronger)
✅ Use confirmations like volume, RSI, or order flow
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A good breakout trader isn’t faster.
They’re just more patient.
Let the market show its hand. Then you act.
That’s how you stack consistent wins ❤️
