🧵 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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