Strategy 02 · Volatility · Stocks & Forex

Breakout Trading

Enter when price breaks key structural levels with volume confirmation. High probability when combined with fundamental catalysts.

Intermediate4H / Daily
Difficulty

How it works

Mark key resistance/support levels. Wait for a close above/below with 150%+ average volume. Enter on retest of broken level (confirmation breakout).

Key patterns

  • Rectangle consolidation
  • Bull/bear flag breakout
  • Triangle & wedge breaks
  • ATH/52-week high breaks

Risk management

Stop below breakout candle low. Never chase — wait for the retest. False breakouts are the #1 trap. Volume is the filter that eliminates 70% of fakeouts.

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