Take advantage of explosive breakouts

Breakouts with volume are a key signal in trading. Here’s how to take advantage of them:

How to identify an explosive breakout:

1. Key levels: Look for important supports and resistances on the chart.

2. Significant volume: Observe a notable increase in volume when breaking the level. This validates the strength of the movement.

Entry strategy:

• Bullish breakout: If the price breaks a resistance with high volume, open a buy position.

• Bearish breakout: If the price breaks a support with increasing volume, open a sell or short position.

Risk management:

• Place a stop-loss just below (in bullish breakouts) or above (in bearish breakouts) the broken level, in case the market makes an unexpected retracement.

• Define profit targets based on the previous distance between supports and resistances.

Remember: Not all breakouts are valid. Volume confirmation is essential to avoid “false breakouts”. With this strategy, you will be ready to capture decisive market movements!$BTC $ETH $XRP