#BreakoutTradingStrategy
Hashtag #BreakoutTradingStrategy means "Breakout Trading Strategy".
Brief Explanation:
🔹 Meaning: Entering a trade when the price breaks a strong support or resistance level (Breakout), expecting the price to continue in the same direction.
How It Works:
1. ✅ Monitor support/resistance levels (e.g., a peak or trough that repeats several times).
2. 🔍 Wait for the breakout — meaning the price strongly breaks this barrier.
3. 💼 Enter the trade after confirmation (e.g., closing a candle above resistance).
4. 🛑 Use a stop loss just below the breakout level.
5. 🎯 Set your profit target based on the distance between the previous support and resistance.
Quick Example:
If the price of a currency fluctuates between $0.90 and $1.00, then breaks the $1.00 barrier and moves upward → this is a bullish breakout, and you can enter a buy.
📉 The opposite is true if it breaks support downward → enter a sell (bearish breakout).
Would you like me to explain the difference between Breakout and Fakeout (false breakout)?