#BreakoutTradingStrategy

1. Identify Key Support & Resistance Zones

• Use 4H and 1H charts to mark major levels where price consistently bounces or rejects.

• Look for levels tested at least 2–3 times recently.

Example:

• BTC has resistance at $108,000

• Support at $105,500

2. Wait for a Confirmed Breakout

Don’t FOMO on the first candle poke.

You need confirmation:

• Full candle close above resistance or below support on 15m or 30m chart

• Higher than average volume on breakout candle

(Best to use Volume Profile Visible Range or regular volume indicator)

3. Confirm with RSI / EMA / OBV (Optional but safer)

• RSI rising from 40–50 zone on breakout up, or falling from 60–50 on breakdown.

• 20 EMA crossing above 50 EMA on breakout.

• On-Balance Volume (OBV) trending with price.

4. Enter Trade Immediately After Confirmation

• Buy long after breakout candle close above resistance

• Short after breakdown candle close below support

Pro tip: Avoid entering during low-liquidity hours (late Asia/early Europe).

5. Set Tight Stop-Loss

• Below last swing low (for long)

• Above last swing high (for short)

Recommended range:

• BTC: 0.5%–1%

• Alts: 1%–2%

6. Target Profit Levels

Use these options:

• Next resistance/support zone

• Risk/Reward ratio minimum 1:2

(if risking $100 → aim for $200+ gain)

• Trail your stop-loss once position moves +1.5%–2% in your favor.