#ArbitrageTradingStrategy Amazing! The Breakout Trading strategy is considered one of the strongest and simplest trading strategies, especially for day traders and scalpers. Let me explain it to you in a practical and realistic way:
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🚀 What is the Breakout Trading strategy?
Breakout Trading means entering the market when the price breaks through a strong resistance or support level, as this breakout is often followed by a strong movement in the same direction (up or down).
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🎯 Objective:
Ride the wave after the market moves out of the consolidation zone.
Enter at the beginning of the new trend, not late.
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📊 Required tools:
1. Support and Resistance levels
2. Confirmation indicators such as:
Trading Volume
RSI (to confirm momentum)
Confirmation candles (such as Marubozu or Engulfing)
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✅ Steps to apply the Breakout strategy:
👇 Practical example: Bullish Breakout
1. Watch a currency like ETH trading in a range between $3400–$3500
2. Identify a strong resistance level = $3500
3. Wait for the price to break this resistance (for example, reaches $3520)
4. Ensure that:
Trading volume is high
There is no direct rejection (Fakeout)
5. Enter a long position