#BreakoutTradingStrategy In the context of trading, opening a position at the moment of a
breakout means entering the market
after the price of the asset
has surpassed a key level
of support or resistance.
This is based on the assumption that the breakout marks the beginning of a new
price movement, and the trader
seeks to join this
movement. For this,
we use the level of support: These are price levels from which
the price of the asset usually
bounces back, forming
temporary boundaries of its
movement.
We also observe the breakout:
The price overcoming the level
of support or resistance.
Opening a position:
The trader opens a long
position (buy) after the breakout
of the resistance level and a short
position (sell) after the breakout
of the support level. Be attentive, opening a position at the moment of a breakout -
is a strategy that requires
careful analysis,
a good understanding of support and resistance levels, and the ability to distinguish true breakouts from false ones.