Breakout trading involves entering a trade when the price moves beyond a key level of support or resistance, often accompanied by high volume. This signals the start of a new trend — either upward or downward.
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📊 Common Breakout Zones:
Type Description Example
📈 Resistance Price ceiling it struggles to go above BNB stuck under $700
📉 Support Price floor it struggles to fall below BTC bouncing at $60,000
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✅ How to Trade a Breakout:
1. Identify a consolidation zone (sideways movement or triangle).
2. Wait for price to break above resistance (bullish) or below support (bearish).
3. Confirm breakout with:
Volume spike
Candle close outside the range
Retest of the broken level (optional)
