Breakout trading is a popular strategy that seeks to capitalize on explosive movements when the price breaks through key levels of support or resistance. However, one of the biggest challenges is false breakouts (fakeouts), which can trap traders and lead to losses. To confirm a real breakout, many traders look for high volume, solid candle closes above the key level, and confirmation on higher time frames. Additionally, indicators such as RSI or MACD can be used to validate momentum. To manage risk, it is recommended to place tight stop-loss orders below the broken zone and use partial orders to secure profits. The key is patience and discipline.
