#BreakoutTradingStrategy

BreakoutTradingStrategy – Trading strategy when price breaks out

Breakout Trading is a trend-following trading strategy when the price breaks through important resistance or support levels, signaling the possibility of forming a strong new trend.

⸻

🔹 Core of the strategy:

• Breakout from accumulation price levels, patterns (triangle, price box, flag).

• A sudden increase in trading volume is a signal to confirm a real breakout.

• Prioritize trading in the direction of the breakout in line with the main trend (continuing breakout), avoid counter-trend breakout (as it is often a trap).

⸻

🔹 How to enter orders:

• Entry: After the breakout candle closes above/below the resistance/support level.

• SL: Place below/above the old breakout level, avoid fake breakout.

• TP: According to R:R ratio of at least 1:2 or based on the height of the accumulation pattern.

⸻

🔹 Advantages – Disadvantages:

Advantages:

• Easy to apply, highly effective if the market has a clear trend.

• Provides early signals before strong fluctuations.

Disadvantages:

• Prone to false breakouts if confirmation is not waited for.

• Ineffective in prolonged sideways markets.

⸻

📌 Conclusion:

The BreakoutTradingStrategy is suitable for both new and professional traders, especially in the highly volatile crypto market. However, it is necessary to additionally combine factors such as volume, price patterns, and news to increase the probability of success.

"Price does not break randomly – it breaks out when large funds start to act."