#BreakoutTradingStrategy ๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡๐Ÿ‘‡

๐Ÿ”ฅ **What It Is**

Trading when price *escapes* a consolidation zone (support/resistance), signaling momentum shift.

๐Ÿ“Š **How It Works**

1๏ธโƒฃ **Identify Range**: Spot price bouncing between clear **support** (floor) and **resistance** (ceiling).

2๏ธโƒฃ **Confirm Break**: Wait for candle close *above resistance* (bullish) or *below support* (bearish).

3๏ธโƒฃ **Volume Check**: Surge in volume ๐ŸŒŠ confirms legitimacy (avoids "fakeouts").

4๏ธโƒฃ **Enter Trade**: Buy/short immediately after breakout confirmation.

5๏ธโƒฃ **Set Stops**: Place stop-loss *below* breakout level (bullish) or *above* (bearish) to limit risk.

6๏ธโƒฃ **Targets**: Aim for 1.5โ€“3x the rangeโ€™s height ๐Ÿ“ˆ.

โš ๏ธ **Why It Works**

โ†’ Explosive moves follow periods of low volatility.

โ†’ Capitalizes on FOMO (fear of missing out) driving momentum.

๐Ÿ’ก **Pro Tip**: Use with indicators like Bollinger Bandsยฎ (squeeze = breakout imminent).