#BreakoutTradingStrategy

What is Breakout Trading Strategy?

The breakout trading strategy is based on identifying significant support or resistance levels in financial markets. When the price breaks through these levels, it can indicate a change in market trend, offering trading opportunities.¹

How does the breakout strategy work?

1. *Identify the market trend*: Analyze higher timeframes to understand the current market trend.

2. *Define support and resistance levels*: Use technical analysis to identify important support and resistance levels.

3. *Wait for the breakout*: Wait for the price to break through the defined levels, indicating a possible change in trend.

4. *Confirm the signal*: Use technical indicators or candlestick patterns to confirm the trading signal.

Example of breakout in Bitcoin

If the price of Bitcoin ($BTC) breaks through an important resistance level, such as US$ 108.806,38, it may indicate an upward trend. On the other hand, if the price falls below a support level, such as US$ 107.429,57, it may signal a downward trend.