#BreakoutTradingStrategy

breakout occurs when the price moves above a resistance level or below a support level with strong volume.

Bullish breakout: Price moves above resistance

Bearish breakout: Price drops below support

🔹 Strategy Steps

Identify Key Zones:

Use support/resistance, trendlines, or chart patterns (e.g., triangles, flags, ranges)

Confirm Volume:

Volume must spike to confirm the breakout (no volume = fakeout risk)

Entry Point:

Enter just above resistance or below support

Stop-Loss:

Place just below the breakout level (for longs) or above (for shorts)

Profit Target:

Use previous swing highs/lows or measure the height of the pattern and project it.

🔹 Useful Tools:

Indicators: Volume, VWAP, EMA, MACD

Patterns: Cup & Handle, Ascending Triangle, Channel Breakouts

⚠️ Tips:

Avoid breakouts during low volume.

Beware of false breakouts—wait for candle close confirmation.

Combine with RSI or MACD for better accuracy.