#BreakoutTradingStrategy Breakout trading on Binance aims to capitalize on significant price movements when an asset's price "breaks out" of a defined support or resistance level. Traders identify consolidation patterns (like triangles or ranges) on charts. When the price decisively moves above resistance (for a long position) or below support (for a short position), often with increased trading volume, a breakout is confirmed.
On Binance, traders execute orders quickly to enter the trade, placing stop-loss orders just outside the breakout level to manage risk. This strategy relies on momentum, seeking to ride the initial surge following the break. For Indian traders, any profits from breakout trades are subject to a flat 30% tax, plus a 1% TDS on sale transactions. Losses cannot be offset or carried forward.
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