#BreakoutTradingStrategy
🔷🔷 Key of Breakout Trading🔷🔷
🎯1. Identify Consolidation or Range
Look for price moving sideways within a defined range (support & resistance).
Example: Triangle, Rectangle, Flag, or Wedge patterns.
🎯2. Set the Breakout Level
Resistance (for bullish breakouts).
Support (for bearish breakdowns).
🎯3. Confirm with Volume
Breakout should happen with above-average volume to be valid.
No volume = high risk of a false breakout.
🎯4. Enter the Trade
Long (buy) if price breaks resistance.
Short (sell) if price breaks support.
Entry either at breakout level or on retest.
🎯5. Set Stop Loss
Just below support (for bullish breakout).
Just above resistance (for bearish breakout).
🎯6. Set Profit Target
Use:
Measured move (height of pattern).
Trail stop to follow the trend