#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