#BreakoutTradingStrategy
🔓 Breakout Trading Strategy – Overview
✅ Core Idea
Enter a trade when price "breaks out" of a key level (support/resistance, trendline, or chart pattern).
Ride the momentum that typically follows the breakout.
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📊 Common Types of Breakouts
Type Description Trade Direction
Horizontal Breakout Price breaks a flat support/resistance level Long/Short
Trendline Breakout Price breaks a sloping trendline Long/Short
Chart Pattern Breakout From patterns like triangle, flag, or wedge Depends on pattern
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🧠 Entry Rules
🔼 Buy Breakout
1. Identify resistance zone (e.g., recent swing highs).
2. Place a buy stop order slightly above the resistance.
3. Confirm with volume (optional but recommended).
🔽 Sell Breakout
1. Identify support zone (e.g., recent swing lows).
2. Place a sell stop order slightly below the support.
3. Confirm with momentum indicators (e.g., RSI < 30).
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📉 Stop-Loss & Take-Profit
Stop-Loss: Just below breakout level for long trades, just above for short.
Take-Profit:
Use measured move (height of the range).
Or use Risk/Reward Ratio (e.g., 1:2 or 1:3).
