Chart Reader SD
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New Traders Must Learn This: What Is a Breakout?
🔍 In Simple Words:
🔼 If the price keeps going up and falling back down, that's called resistance.
🔽 If the price keeps dropping and bouncing back up, that's called support.
If the price keeps moving between these two levels, it's a rangebound market.
When a Breakout Happens:
If price breaks above resistance
it's a buying opportunity for buyers.
If price breaks below support
it's a selling opportunity for short sellers.
🔁 In both cases, if the price returns to the breakout level (retest)
and then moves again in the same direction
the breakout is confirmed.
📌 Key Lesson:
Entering too early can trap you in a fake breakout. Waiting for a retest confirmation safer entry, whether you're buying or selling.
Follow for more information like this.
#BreakoutStrategy #PriceActionTips
🔍 In Simple Words:
🔼 If the price keeps going up and falling back down, that's called resistance.
🔽 If the price keeps dropping and bouncing back up, that's called support.
If the price keeps moving between these two levels, it's a rangebound market.
When a Breakout Happens:
If price breaks above resistance
it's a buying opportunity for buyers.
If price breaks below support
it's a selling opportunity for short sellers.
🔁 In both cases, if the price returns to the breakout level (retest)
and then moves again in the same direction
the breakout is confirmed.
📌 Key Lesson:
Entering too early can trap you in a fake breakout. Waiting for a retest confirmation safer entry, whether you're buying or selling.
Follow for more information like this.
#BreakoutStrategy #PriceActionTips
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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