Support Breakouts

The support breakout is a very straightforward trade setup that utilizes the many support levels that occur within all charts.

The setup works best in strongly down trending markets and occurs where a clear level through which price has failed to penetrate on several occasions has formed, giving rise to the support level itself.  Finally price builds up enough energy to punch down through the support level and continue the trend.

The principles of the support breakout form the basis of many other breakout trading strategies e.g. descending triangles or channel breakouts and hence all are really just a variation on a theme of the classic support breakout trade.

Check out the video below for further explanation.

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