1. Wait for consolidation after a strong move
- The coin has already shown momentum, and now the price is 'resting' near the highs.
- Consolidation can look like a flat, triangle, correction, or sideways movement.
2. Draw a line at the maximum (resistance level)
- The more often the price tests this level, the more significant it is.
- Ideally, if there was a 'compressed' range (narrow flat) before the breakout.
3. Entry on breakout
- Classic entry: Closing the candle above the level (better on a higher timeframe for reliability).
- Aggressive entry: You can enter on the retest of the level after the breakout.
- Volume/liquidations: It's good if the breakout is accompanied by an increase in volume or liquidation of shorts.
4. Take profit
- Next key level (previous ATH, psychological zone, etc.).
- You can partially take profit as it moves.
5. Invalidity zone (invalidations)
- If the price returns inside the consolidation – this is a signal of a false breakout.
- Stop-loss: Either just below the level or below the local minimum within consolidation.
Additional tips
✅ Trend filter: It's better to trade breakouts in the direction of the overall trend (if BTC is rising, look for longs).
✅ Timeframes: On H1/D1, breakouts are more reliable, but you can scalp on M5-M15.
✅ False breakouts: If the price immediately pulls back inside the level – don’t hold the trade, exit.
Example (BTC/USDT on D1)
- BTC sharply rose, then consolidated for a week at $50K.
- Draw a line at the maxima.
- Closing the candle above $50K – entry.
- Take profit at $55K (next level).
- If the price falls back below $50K – exit.
Important: No strategy guarantees a 100% win rate. Always manage risk (risk ≤1-2% per trade).
If you want, I can analyze a specific example with a chart. 🚀