#BreakoutTradingStrategy Breakout Trading Strategy: Spot, Confirm, Manage

1. Spotting: Identify clear key levels (support/resistance, consolidation ranges, chart patterns) with multiple touches. Focus on levels showing clear rejection candles beforehand.

2. Confirming (CRITICAL): Never chase the initial spike! Wait for:

Strong Volume Surge: Breakout candle volume should be significantly higher than recent average. Low volume = high fakeout risk.

Candle Close: Require the price to close decisively above/below the level, not just wick through. A full-bodied candle is ideal.

Retest Success (Optional but strong): Price pulls back to retest the broken level as new support/resistance and holds.

3. Avoiding False Signals: The volume close filter eliminates most false breakouts. Be extra cautious during low liquidity periods (e.g., nights, weekends in crypto) or ahead of major news.

4. Managing Trades:

Entry: Enter on the confirmed close or on a successful retest of the breakout level.

Stop Loss: Place SL just below the breakout level (for long) or above (for short). This defines your risk if it fails.

Take Profit: Target prior significant resistance (long) or support (short). Trail stops to lock in gains as the trend extends.

Key: Patience for confirmation and strict SL placement are non-negotiable.