#BreakoutTradingStrategy

What is the Breakout Strategy?

It is a trading method that relies on entering a trade when the price breaks through a strong resistance or support level, with high trading volume, where it is expected that the price will continue in the same direction strongly.

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✅ When do traders use this strategy?

When the price approaches a fixed resistance or support level.

When a strong breakout occurs accompanied by an increase in trading volume.

In volatile and ranging markets to look for a new directional movement.

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🧠 Components of the strategy:

1. Identify support and resistance areas on the chart.

2. Wait for the breakout moment - when the price closes above resistance or below support.

3. Confirm with high trading volume to ensure the validity of the breakout.

4. Enter the trade immediately after the breakout or wait for a retest.

5. Set the stop loss below/above the breakout area.

6. Define the target using a risk-to-reward ratio (such as 1:2 or 1:3).