Tools for Breakout Trading


It's a popular trading method and shows results (Profit or Loss) instantly. A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock breaks below support. Once the stock trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout's direction. The reason breakouts are such an important trading strategy is because these setups are the starting point for future volatility increases, large price swings and, in many circumstances, major price trends.


A few pointers for Breakout trading:


1. TRADE BREAKOUTS IN THE DIRECTION OF THE TREND

2. WAIT FOR HIGHER VOLUME TO CONFIRM A BREAKOUT

3. ENTER ON RETEST OF SUPPORT OR RESISTANCE

4. TAKE ADVANTAGE OF VOLATILITY CYCLES

5. HAVE A PREDETERMINED EXIT PLAN

6. SAVE TIME BY SCANNING FOR BREAKOUT CANDIDATES

Today’s TataMotors Breakout trade 


https://twitter.com/ORBHQs/status/1171711196371644417


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