#BreakoutTradingStrategy
What is the Breakout Trading Strategy?
It is a trading method that relies on entering a trade when the price breaks a strong support or resistance level (or a sideways price range) with high trading volume, hoping that the new trend will continue after the breakout.
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📈 Main Idea:
“If the price breaks a strong resistance or support area, it is likely to move strongly in the direction of the breakout.”
Example:
• If the BTC price stays between 58,000 and 60,000 for a while, then breaks 60,000 with high volume → it is considered a buy signal.
• If it breaks 58,000 downwards → it is considered a sell signal.
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🧠 How to use it practically?
1. Identify a range or pattern
• Clear resistance or support areas
• Patterns such as: triangle, rectangle, sideways channel