#BreakoutTradingStrategy
Breakout trading focuses on identifying key levels of support and resistance and entering a trade when price “breaks out” of those zones with strong momentum. These breakouts can lead to explosive moves, especially in crypto. Traders often watch patterns like triangles, flags, and rectangles — once the breakout happens with confirmation from volume or candle closes, it’s go time. Entries are placed just above resistance (for long) or below support (for short). However, not all breakouts are real — fakeouts happen, so it’s important to wait for confirmation and use tight stop-losses. This strategy works best in volatile markets and is favored by both scalpers and swing traders. A well-executed breakout trade offers high reward-to-risk ratio and helps you enter early in trending moves. Timing, patience, and confirmation are key.
