Support & Resistance – Breakouts

A breakout happens when price moves decisively above resistance or below support with momentum.

Strong breakouts show a shift in sentiment, institutional participation, and the start of a new trend.

Two types: Resistance Breakout (above resistance) and Support Breakdown (below support).

Signs of a genuine breakout:

Candle closes beyond the level

Volume increases

Breakout holds for more than one candle

Retest confirms the level
High volume = conviction
Low volume = higher chance of failure
Common mistakes: entering early, ignoring volume, chasing big candles, no stop loss

Golden rules: wait for close, trade with volume, use retests, place stop loss, stay patient