🧵 Thread 30 – How to use channel breakouts to detect opportunities on Binance 🚨📊
Channels not only serve to follow the trend, but they also alert you when it may be about to end or accelerate. Here I explain how to use breakouts 👇
1️⃣ What is a breakout:
When the price exits the trend channel (either above or below), it is considered a breakout.
This can be a signal of a strong change or continuation.
2️⃣ Types of breakout:
• Bullish breakout: the price breaks the upper part of the channel = possible strong rise.
• Bearish breakout: the price breaks the lower part of the channel = possible drop.
3️⃣ How to trade a breakout:
✅ Wait for confirmation (e.g. candle with strong volume, retest of the broken channel).
⚠️ Do not enter just because of a wick, it may be a trap.
4️⃣ Retest = powerful signal
If the price breaks and then comes back to "retest" the channel from the outside and bounces…
📌 It is a strong validation signal to enter with less risk.
5️⃣ Don't forget the context:
• Use higher time frames for validation.
• Combine with RSI, volume, or other indicators for confirmation.
📉 A false breakout can give you a bad entry. That’s why confirmation is key.
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