#BreakoutTradingStrategy 🔹 #BreakoutTradingStrategy (Breakout Strategy)

It is one of the most famous trading strategies, relying on entering a trade when the price breaks a significant support or resistance level (Breakout), expecting that the price will continue to move strongly in the same direction as the breakout.

🚀 What is the idea behind the breakout strategy?

The market often moves within ranges (sideways / oscillation).

When this range is broken, many traders enter, increasing momentum and pushing the price strongly in the direction of the breakout.

The goal is to take advantage of this rapid movement.

✅ Steps to apply the Breakout strategy:

1️⃣ Identify significant support and resistance levels:

Horizontal lines at clear peaks and troughs.

Or a pattern (such as a triangle, rectangle, channel).

2️⃣ Monitor the price as it approaches the level:

Wait for it to test the level several times (the more tests, the stronger the breakout tends to be).

3️⃣ Enter at the real breakout:

Buy at resistance breakout.

Sell at support breakdown.

4️⃣ Avoid false breakouts:

Wait for a candle to close outside the level, not just wicks.

Or use confirmation such as an increase in trading volume.

5️⃣ Set stop loss and take profit:

Often just behind the broken level.

Take profit based on measuring the previous pattern range (like the height of the rectangle).

🔍 Indicators that may support you:

Volume: A strong breakout is often accompanied by high volume.