#BreakoutTradingStrategy

A breakout occurs when the price of a crypto, stock, or commodity moves outside a defined support or resistance level with increased volume. This typically signals the start of a new trend — either bullish (upward breakout) or bearish (downward breakout).

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🧠 Key Concepts

Term Meaning

Support Level Price floor where demand is strong enough to stop the fall

Resistance Level Price ceiling where selling pressure stops the rise

Breakout Price moves above resistance or below support

Volume Confirmation A breakout with high trading volume confirms strength

False Breakout Price briefly crosses key level but quickly returns back

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📈 Types of Breakouts

1. Bullish Breakout 🔼

Price breaks above resistance

Signals potential uptrend

Example: BTC breaking above $65K after weeks of sideways movement