#BreakoutTradingStrategy breakout

To understand why this strategy works, it's important to understand crowd psychology:

✔️Consolidation: When the price moves sideways (for example, in a rectangle), it means that the forces of buyers ("bulls") and sellers ("bears") are roughly equal. They are fighting for initiative.

▶️Breakout moment: A breakout above the resistance level means that the buyers have won.

👑Traders who bet on a decline (shorted) begin to massively close their losing positions, i.e., buy to exit the market. This adds fuel for growth.