Breakout Trading Strategy Explained
Ready to catch the next big move? 📈 Breakout trading is all about identifying key support and resistance levels and entering a trade when the price "breaks out" of that range.
Here's the gist:
* Identify a range: Look for periods where price is consolidating.
* Wait for the break: Enter when price decisively moves above resistance (for a long) or below support (for a short).
* Confirm: Volume often increases during a valid breakout.
* Set stops: Protect your capital in case of a false breakout!
It's a powerful strategy for capturing momentum! What are your favorite tools for spotting breakouts?