🔥 Time for the breakout.. Are you entering or waiting?
One of the strongest strategies I use in trading is the breakout strategy, but let me tell you straight: not every breakout means an opportunity, and you can easily get caught in a "breakout trap" if you're not careful.
I don't jump in right away as soon as the price breaks a support or resistance level. I wait to see if there's strong trading volume, and I watch how the price behaves after the breakout. If the price retraces and does a retest and holds the new level? That's when I start to seriously consider entering.
I also use helpful indicators like RSI or MACD, but honestly, the most important thing for me is the movement itself on the chart. There needs to be logic and clarity.
The biggest mistake you can make is to enter randomly or on the first candle. You need patience, proper risk management, and a clear plan, from entry to profit taking.
What’s your approach with breakouts? Do you jump in right away or wait for confirmation? Share your opinion with me 👇
