š Breakout Trading Strategy: Catching the Momentum Early š
Breakout trading is a powerful strategy used by traders to enter positions when the price breaks above resistance or below support with strong volume. The logic? Breakouts often signal the start of a new trendāoffering high reward if timed right.
Smart breakout traders donāt just buy every pumpāthey wait for confirmation, like candle closes above the key level, rising volume, or a retest. Setting tight stop-losses below the breakout zone helps reduce risk.
Breakouts work best during high volatility or news-driven marketsāperfect for crypto. Whether itās Bitcoin pushing past $70K or an altcoin breaking a multi-week range, breakout trading can offer big movesāif you act with discipline. ā”