When Price Says, I'm Outta Here!
What Is a Breakout?
a chicken trapped in a cage range.It keeps walking left-right, up-down, BORED.Suddenly it flaps hard and escapes the cage.
That moment is called a breakout.
In trading, a breakout means price breaks above resistance roof or below support floor after moving sideways for a while.
Why Breakouts Matter?
Because breakouts = big moves.
It’s the moment when price decides to stop chilling and start running!
You can catch this move early and ride the wave like a pro surfer.
Types of Breakouts
1. Bullish Breakout
Price breaks above resistance
Market says: “LET’S GOOOO!”
Traders look for long entry
Example:
Price was stuck between $0.90–$1.00. It finally breaks above $1.00 with strong volume. BOOM! Bullish breakout.
2. Bearish Breakout
Price breaks below support
Market whispers: “I’m scared...” and drops
Traders look for short entry
Example:
Price was dancing between $0.80–$0.70. It suddenly breaks below $0.70. Welcome to the downside slide!
3 Secret Types of Breakouts
A. Fakeout (False Breakout)
Price breaks support/resistance… but then returns fast
It traps traders!
Like a cat who runs out the door but comes back in 10 seconds
Tip: Always wait for a retest or confirmation candle.
B. Retest Breakout
Price breaks out
Then comes back to test the level it broke
If it holds, that’s a confirmation
Safer entry!
Tip: Think of it like checking the lock after closing the door — just to be sure.
C. Volume Breakout
Strong breakout with high trading volume
Shows real strength
Best breakouts usually come with high volume
No Volume = Weak Move
How to Trade Breakouts
Mark Resistance & Support zones clearly
Wait for price to break the zone
Check volume — high is good
Wait for retest or candle close above/below
Enter trade – Long or Short
Set stop-loss below breakout (for long) or above (for short)
Target recent swing highs/lows
Some Common question :
Q: Should I enter as soon as breakout happens?
A: No! Be patient. Many fake breakouts happen to trap you. Wait for confirmation.
Q: How do I know if breakout is strong?
A: Look for 2 things:
Volume increases
Candle closes clearly outside the zone
Q: What is a good breakout setup?
A: When price was stuck for a long time in a tight zone and breaks out with high volume. That’s juicy!
Q: Why do I keep losing in breakouts?
A: You might be entering early, no confirmation, or skipping stop-loss. Fix those!
Example
Think of price like your friend who always says “I’m leaving this toxic relationship!”
Then goes back next day.
That’s a fakeout.
But when she finally deletes his number and blocks him…
That’s a confirmed breakout.
Some Tips ( Take it or not as you wish)
Never chase breakout with FOMO
Fakeouts are part of the game
Use small capital (1% rule)
Retest = safer entry
Practice with backtesting
Personal opinion :
Breakouts are like drama in a social media group —
Everyone watches quietly, then suddenly it explodes!
Be ready when that moment comes.
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