ITZ TRADER
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#BreakoutTradingStrategy Breakout Trading Strategy: Spot, Confirm, Manage
1. Spotting: Identify clear key levels (support/resistance, consolidation ranges, chart patterns) with multiple touches. Focus on levels showing clear rejection candles beforehand.
2. Confirming (CRITICAL): Never chase the initial spike! Wait for:
Strong Volume Surge: Breakout candle volume should be significantly higher than recent average. Low volume = high fakeout risk.
Candle Close: Require the price to close decisively above/below the level, not just wick through. A full-bodied candle is ideal.
Retest Success (Optional but strong): Price pulls back to retest the broken level as new support/resistance and holds.
3. Avoiding False Signals: The volume close filter eliminates most false breakouts. Be extra cautious during low liquidity periods (e.g., nights, weekends in crypto) or ahead of major news.
1. Spotting: Identify clear key levels (support/resistance, consolidation ranges, chart patterns) with multiple touches. Focus on levels showing clear rejection candles beforehand.
2. Confirming (CRITICAL): Never chase the initial spike! Wait for:
Strong Volume Surge: Breakout candle volume should be significantly higher than recent average. Low volume = high fakeout risk.
Candle Close: Require the price to close decisively above/below the level, not just wick through. A full-bodied candle is ideal.
Retest Success (Optional but strong): Price pulls back to retest the broken level as new support/resistance and holds.
3. Avoiding False Signals: The volume close filter eliminates most false breakouts. Be extra cautious during low liquidity periods (e.g., nights, weekends in crypto) or ahead of major news.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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