#BreakoutTradingStrategy : How to Catch Strong Market Movements?**
Breakout trading is a strategy where trades are opened when the price breaks key support/resistance levels.
**🔹 How does it work?**
1. Identify consolidation (flat, triangle, channel)
2. Wait for a breakout with increased volume
3. Enter in the direction of the breakout
**🔹 Key rules:**
✔ Confirmation of momentum (volume, candle patterns)
✔ Filtering false breakouts (closing the candle beyond the level)
✔ Take profit = 1.5-3x of the stop loss
**🔹 Risks:** False breakouts (up to 50% of cases), so risk management is important!
#Trading #Forex #Stocks #Investing