Breakout Strategy: How to Catch Price Explosions Before Everyone Else?
Have you ever seen a currency suddenly jump +100% in hours and wished you had entered before the explosion?
The secret is often the Breakout Trading Strategy!
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🔍 What is the Breakout Strategy?
It is entering a trade when the price breaks a significant resistance or support level, which means the market is preparing for a strong move in a certain direction.
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📌 Steps to Implement the Strategy:
1. Identify the significant level: Look for a price area that the market has bounced off multiple times.
2. Wait for the true breakout: Do not enter as soon as the price touches the level; instead, wait for a strong closing candle outside the level.
3. Confirm with volume: The higher the trading volume at the breakout, the stronger the move.
4. Set a stop loss: Below the breakout area for long trades, or above it for short trades.
5. Set the target: It is often equal to the last range the price moved in before the breakout.
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💡 Golden Tip: Do not enter every breakout you see… Only choose levels where the price has bounced more than 3 times, and the trading volume supports the move.
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📍 Start your trading experience on Binance:
