#TradingStrategyMistakes

# **Breakout Trading Strategy in Arabic**

## 📌 **What is the Breakout Strategy?**

The **Breakout Trading** strategy relies on identifying key **support and resistance levels**, then entering the trade when the **price breaks** these levels with volume confirmation.

### **Why does this strategy work?**

✔️ A breakout indicates a **change in direction** or acceleration of the current movement

✔️ Key levels are **battle zones** between buyers and sellers

✔️ A proper breakout is often followed by **strong movement**

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## 🎯 **How to Apply the Breakout Strategy?**

### **1. Identify Potential Breakout Areas**

- **Resistance**: A level that the price touches and then retracts from multiple times

- **Support**: A level from which the price bounces back up several times

- **Sideways Range**: When the price moves between clear support and resistance

### **2. Wait for the Break with Confirmation**

🚨 **Do not buy/sell just because the price touches the level!**

✔️ **Volume Confirmation**: Trading volume should increase at the breakout

✔️ **Candle Close**: The candle must **close above resistance** or **below support**

✔️ **Strong Breakout**: The best breakouts occur after a long **consolidation**

### **3. Enter the Trade**

- **Buy on a break of resistance** (with volume confirmation)

- **Sell on a break of support** (with volume confirmation)

- **Stop Loss**: Below the breakout area (for buyers)