#BreakoutTradingStrategy | Don’t Chase – Confirm First
Breakouts are exciting—but not all of them are real. Just last week, Bitcoin surged toward $58,000, only to pull back sharply within hours. That fakeout wiped out impatient long positions and reminded traders that confirmation matters more than hype.
In my own strategy, I treat breakouts with caution. I wait for clear candle closes above resistance, ideally on the 4-hour or daily chart, backed by strong volume. No volume? I skip the trade. No close above the level? I don’t chase it.
I also place alerts at key breakout zones instead of market orders, giving myself time to assess the move calmly. If the price pulls back and retests support successfully, that’s when I look to enter with a defined stop-loss.
The key is not predicting the breakout but reacting smartly once the price confirms strength.
💬 Have you been caught in a fakeout lately? What’s your method for confirming a real breakout?