#BreakoutTradingStrategy
The Breakout strategy relies on entering trades when the price breaks out of a strong resistance or support area, aiming to benefit from the price explosion that occurs after exiting the range of fluctuations.
✅ Basic Steps:
Identify clear support and resistance areas (preferably on the 1h or 4h timeframe).
Wait for the price to approach these areas with a decrease in volume.
Monitor the breakout: it should be accompanied by an increase in volume (Confirmation).
Enter after closing above resistance or below support (do not enter during the breakout directly).
Set your target based on the length of the previous range.
📉 Practical Example:
The price moves within a range of $100 between 27000 and 27100.
A breakout occurred upwards with a strong candle and high volume.
Entry at 27110, target 27210, stop loss just below the breakout.
📊 Helpful Tools:
Trading volume.
Bollinger Bands: narrowing of the bands is a signal of an impending breakout.
RSI: avoid entering when it is overly bought or sold.
Fibonacci levels to determine targets.
⚠️ Risks to Watch For:
False breakout: very common, so do not enter without confirmation.
Late entry after the breakout may reduce profit or expose you to reversal.
Do not use high leverage with uncertain breakouts.
🧠 Professional Tips:
It is better to wait for the candle to close after the breakout, especially in smaller timeframes.
The trade can be divided into an initial entry after the breakout.
