#BreakoutTradingStrategy
Breakout trading is a technique used to enter a position when the price breaks above a defined resistance or below a support level with high volume. It’s a popular strategy among crypto traders because of the market’s volatility. When a breakout occurs, it often leads to a significant price movement. I like using this strategy during consolidation phases, where the price is stuck in a tight range. The breakout usually signals the start of a new trend. However, fake breakouts can happen, so confirmation with volume or retest is essential. Proper risk management is also a must with this strategy.