#BreakoutTradingStrategy

What is a Breakout?

A breakout occurs when the price moves beyond a defined level of support or resistance — usually signaling the start of a strong trend (up or down).

Bullish breakout = price breaks above resistance.

Bearish breakout = price breaks below support.

Breakout traders aim to enter early and ride the momentum.

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📐 Key Concepts

1. Identify Consolidation Zones

Look for:

Sideways movement (tight range).

Price bouncing between support and resistance.

Often forms chart patterns like:

Triangles (ascending, descending, symmetrical)

Rectangles

Flags/Pennants

2. Volume Confirmation

Volume should increase on a valid breakout.

Low volume = fakeout risk.