#BreakoutTradingStrategy ๐๐๐๐
๐ฅ **What It Is**
Trading when price *escapes* a consolidation zone (support/resistance), signaling momentum shift.
๐ **How It Works**
1๏ธโฃ **Identify Range**: Spot price bouncing between clear **support** (floor) and **resistance** (ceiling).
2๏ธโฃ **Confirm Break**: Wait for candle close *above resistance* (bullish) or *below support* (bearish).
3๏ธโฃ **Volume Check**: Surge in volume ๐ confirms legitimacy (avoids "fakeouts").
4๏ธโฃ **Enter Trade**: Buy/short immediately after breakout confirmation.
5๏ธโฃ **Set Stops**: Place stop-loss *below* breakout level (bullish) or *above* (bearish) to limit risk.
6๏ธโฃ **Targets**: Aim for 1.5โ3x the rangeโs height ๐.
โ ๏ธ **Why It Works**
โ Explosive moves follow periods of low volatility.
โ Capitalizes on FOMO (fear of missing out) driving momentum.
๐ก **Pro Tip**: Use with indicators like Bollinger Bandsยฎ (squeeze = breakout imminent).