Breakthrough trading strategies require accurate identification of true and false breakouts to reduce risk. First, confirming a breakout should be combined with multidimensional analysis: when the price breaks through key support/resistance levels, observe whether the trading volume significantly increases, as high trading volume usually corroborates the validity of the breakout. Secondly, candlestick patterns such as a large bullish candle or a breakout gap can enhance the credibility of the signal. The time frame is also crucial; breakouts in longer time frames (such as daily or weekly) are more reliable than those in shorter time frames. To avoid false breakouts, one can wait for a price close confirmation to avoid being misled by intraday fluctuations; or combine technical indicators, such as RSI overbought/oversold or MACD golden cross/death cross, to filter out noise.
In terms of risk management, setting stop losses is critical, typically placed below/above the recent low/high points of the breakout, to control losses. Position management is recommended to not exceed 1-2% of account funds to diversify risk. After a breakout, dynamically track profit-taking, such as using moving averages or ATR multiples to adjust exit points and lock in profits. Furthermore, pay attention to market fundamentals and news to avoid trading blindly before major events. #突破交易策略