TradingView Strategy Trade Breakout Pro ?-TradingView
Hello
traders, in this video we will delve into the strategy that I have been very
successful in making quality trades, which is the Breakout trading strategy.
The Breakout
trading strategy is applied by many professional traders around the world in
different ways.
Now I want to
make this video to consolidate and delve into every aspect that the Breakout
trading strategy brings to successful traders.
First of all,
what is a breakout?
The main
characteristics of a breakout:
First:
Support and resistance levels:
Resistance: A
price level at which there are many sellers, causing the price to not break
through.
Support: A
price level at which there are many buyers, preventing the price from falling
lower.
Second:
Confirmation:
A breakout is
considered confirmed when the price closes above or below resistance with a
large increase in trading volume.
Third: Market
momentum:
Breakouts
often create strong momentum in the market. After a breakout occurs, the price
may continue moving in the new direction.
Fourth:
Trading strategy:
Many traders
will enter a buy order when the price breaks above resistance or enter a sell
order when the price breaks below support, hoping that the new trend will
continue.
Why are
breakouts important?
• Buy/Sell
signals: Breakouts can provide traders with strong signals about a new trend.
• Probability
of success: Breakouts are often accompanied by increased trading volume,
indicating market consensus on the price movement.
So in
summary, in my opinion, the breakout has two main keys that we need to
understand:
First: the
breaking of the top and bottom of an existing trend occurs
The second
is: the breakdown of support and resistance levels
Now let's go
deeper into analyzing the above two key points
About the
breaking of the HIGH high and LOW low of a current trend occurring
Please see
the following chart to see clearly
The bottom
price fluctuates like a miniature version of support and resistance levels that
you can easily see
When trading
breakouts, you can trade breakouts of swing highs and swing lows
Or you can
trade support and resistance breakouts
Second is
:the Breakout according to support and resistance levels
You see on
the chart
On the
current chart, you see the price creating an important resistance zone
The price has
tested twice at a certain price zone, then the price broke up and closed above
the resistance price.......
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