š Breakout Trading Strategy ā Catch the Move Before It Runs! š
Breakout trading is a powerful strategy used to enter trades when the price breaks above resistance or below support with high volume. The idea is simple: trade the momentum when the market breaks out of a range.
š How it works:
ā¢ Identify key support and resistance levels.
ā¢ Wait for the price to ābreak outā with strong volume.
ā¢ Enter the trade after confirmationādonāt chase false breakouts!
ā¢ Set stop-loss just below (for long) or above (for short) the breakout level.
š Breakouts often lead to strong trends, especially after long consolidation periods. Combine this strategy with indicators like Bollinger Bands, volume spikes, or RSI divergence to improve accuracy.
š Pro Tip: False breakouts are commonāalways wait for a candle close above/below the level before entering.
Breakout trading rewards patience, discipline, and timing. Get in early, ride the wave, and manage your risk.