#BreakoutTradingStrategy Here’s a quick breakdown of the Breakout Trading Strategy approach:
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🧠 What Is Breakout Trading?
Breakout trading involves entering a position when the price “breaks out” of a key level:
📈 Resistance Breakout → Buy signal
📉 Support Breakdown → Sell/Short signal
These levels are typically established via chart patterns like triangles, flags, ranges, or channels.
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🛠️ Core Components
Element Details
Setup Identify horizontal resistance/support or chart patterns (e.g., ascending triangle)
Confirmation Look for high volume and strong candles to confirm breakout
Entry Enter as price breaks the level or on a retest
Stop Loss Just below resistance (for breakout) or above support (for breakdown)
Take Profit Based on measured move or risk/reward ratio (e.g., 2:1 or 3:1)