๐ Key Elements of a Breakout Strategy:
#BreakoutTradingStrategy #Write2Earn
1. Identify Key Levels
Use horizontal lines to mark support and resistance zones
Rely on chart patterns like triangles, flags, or rectangles
2. Wait for Volume Confirmation
Breakouts with high trading volume are more likely to sustain
Low-volume breakouts often result in false signals or โfakeoutsโ
3. Use Entry Triggers
Enter the trade once the price closes above resistance or below support
Alternatively, set a buy-stop or sell-stop order slightly beyond the breakout level
4. Set Stop-Loss and Take-Profit
Place stop-loss just below (for long) or above (for short) the breakout level
Use risk-reward ratios like 1:2 or 1:3 for setting targets