#BreakoutTradingStrategy

Key to detecting explosive movements

The Breakout Trading strategy is one of the most popular among technical traders, especially in volatile markets like cryptocurrencies. This technique is based on identifying moments when the price of an asset breaks key levels of support or resistance, thus generating a possible strong trend.

When the price surpasses significant resistance with high volume, many traders interpret it as a buy signal. The same happens in the opposite direction if it breaks a support: it may be a sell signal or short entry.

The goal of the strategy is to capture explosive movements just as they begin. However, it is important to use confirmations, such as candlestick patterns, technical indicators (like RSI or MACD), and volume, to avoid false breakouts or fakeouts.