// HOW-TO GUIDE
12 min READ
How to Trade Breakouts Safely (Avoid the Fakeout)
Breakout trading is where big moves start, but it's also where most retail traders get "trapped." Learn how to identify high-probability breakouts.
01
Identify a Range or Pattern
Look for a clear resistance or support level that has been tested at least 3 times. The tighter the range, the bigger the breakout.
02
Monitor Volume
A true breakout should be accompanied by a spike in volume. If price breaks out on low volume, it is likely a fakeout.
03
Wait for the Retest
The safest way to trade a breakout is to wait for price to return to the breakout level and confirm it as new support/resistance.
Common Mistakes to Avoid
- /Entering before the candle closes
- /Placing stops too close to the breakout level
The Drawdown Way
Our AI Scanner alerts you to volume-confirmed breakouts in real-time.
Questions & Answers.
Ready to trade the truth?
Stop guessing. Start learning with Drawdown and master the business of managing risk.
Join Drawdown Free