The breakout trading strategy is considered one of the most effective strategies, especially when applied to currency pairs like BTC/USD.
A true breakout occurs when the price surpasses a strong resistance level with a noticeable increase in trading volume, indicating the entry of new buying forces that may drive the price up sustainably.
From my experience, using indicators like trading volume and moving averages helps confirm the validity of the breakout and avoid false signals.
Additionally, it is essential to place stop-loss orders below the previous support level to minimize risks in case the price retraces.
Commitment to patience and not rushing to enter before confirming the strength of the breakout is the key to success in this strategy..
