Trader Maxey|Aug 07, 2026 07:04
Breakout Trading & Price Action
The key to breakout trading isn’t just chasing every breakout you see—it’s about assessing the quality of the breakout.
1️⃣ Strong Breakout:
A large-bodied candlestick breaks a key level with obvious buying power. You can consider entering directly.
2️⃣ Normal Breakout:
After the breakout, wait for the first pullback. Observe whether resistance turns into support. Enter only when rejection signals appear—this is the most common method.
3️⃣ Weak Breakout:
Insufficient breakout strength, prone to fake breakouts. Don’t rush to enter. Wait for further market confirmation to see if it’s a fake breakout or a second pullback breakout.
#trading #PriceAction
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