Breakout trading is a trading strategy where a trade is taken in the direction when the price strongly breaks out of a significant level (Support or Resistance).
🔍 Understand it simply
The price often oscillates within the same range
Upper level = Resistance
Lower level = Support
When the price breaks out of this level, that is Breakout
📈 Types of Breakouts
1️⃣ Bullish Breakout
When the price breaks above Resistance
👉 Buy / Long is taken
2️⃣ Bearish Breakout
When the price breaks below Support
👉 Sell / Short is taken
✅ Signs of a good breakout
✔️ High volume
✔️ Strong candle (Full body candle)
✔️ Clearly breaks the previous range
✔️ Not a fake breakout (Caution on fake breakouts)