Mastering Breakouts – Spot the Move Before It Happens

Breakouts are powerful signals of potential momentum and trend continuation — but not all breakouts are created equal.

Here's a breakdown of the 3 most common types:

1. Descending Triangle (Lower Highs + Support)

A bearish pattern where price forms lower highs while holding a horizontal support level.

Once the support breaks, it triggers a strong downside move (breakdown).

Volume confirmation boosts reliability.

2. Range Breakdown (Horizontal Resistance & Support)

Price consolidates in a tight horizontal range.

A breakdown from the support zone signals bearish continuation.

Common after large moves as the market cools before another leg.

3. Ascending Triangle (Higher Lows + Resistance)

A bullish setup where price forms higher lows while facing horizontal resistance.

A breakout above resistance often starts a bullish rally.

Volume spike is key for confirmation.

Tip: Always wait for candle close and retest for better entries. False breakouts are common traps!

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