#BreakoutTradingStrategy 📖 Understanding Breakouts

A breakout happens when the price of a cryptocurrency moves beyond a clearly defined range. This can go two ways:

📈 When the price moves above resistance, it’s called a bullish breakout.

📉 When the price drops below support, it’s a bearish breakout.

🔍 How the Strategy Works

1️⃣ Spot a Range or Consolidation Zone

Look for times when the price is trading sideways within a tight zone. Common chart patterns include:

🔺 Ascending or descending triangles

🚩 Flags and pennants

📦 Rectangular ranges

🪜 Wedges

2️⃣ Mark Important Levels

Identify the key price zones:

🟢 Support – the level where price often stops falling

🔴 Resistance – the level where price often stops rising

3️⃣ Wait for a Breakout with Volume

Once price breaks out above resistance or below support, check the volume. 💥 High volume can confirm that the breakout is strong and more likely to continue.

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