Breakout Strategy is a word that includes its meaning, so a breakout is when the price breaks a level. Also if breakout is a method that require some experience in trading, you can use this technique with the help of our lovely Trading View. In fact on this website there are many indicators for breakout points and moreover you have drawing tools that help you to detect channels, triangle and many other figures. Below I present channel kinds of breakout but in my opinion you can use for example the ChannelBreakout indicator included in Trading View.
Now I’ll show you only 1 kind of breakout but there are many types. Anyway you will find some tips in our newcoming educational section.
In the picture above I drew 2 lines, one following the highs and one following the lows. It is suitable to draw your channel on a longer timeframe and then scale it to a shorter timeframe, for example 15 minutes like the picture below.
This is the same channel that I drew on the 1 hour timeframe chart. As you can see there is a strong breakout. So, once the breaking candle has closed, you have to enter a Buy position.
It is obvious that you do the same for sell positions, but considering bearish candles.
As you can see the Breakout Strategy is a useful method but I suggest to use some indicators in addition to the channel.