Complete Guide to the Breakout Level Strategy: Showing All 9 Steps! Crypto Trading

[00:01] This video will provide detailed instructions on how to trade breakouts. I'll tell you which coins can be traded and which setups are suitable for us. I will also tell you when to enter, where to enter, and where to exit. In

[00:14] general, all the most interesting and useful information on this topic. Be sure to subscribe to the channel and like this video, because there will be a lot of useful information. Well, if the video turns out to be useless or uninteresting, you can easily remove the like at the end

[00:27] . I must warn you right away that this is like a grail, but not a sacred one, and is not suitable for everyone. Why? Because I have my own psychology, and you have yours. You trade according to your psychotype, I trade according to mine. And the same

[00:43] strategy may not suit us. Why is it that some people use a phone as a tool for entertainment, watching videos, TikToks, while for others it's a tool for making money, for uploading videos, for

[00:58] recording some kind of video and uploading it for others to watch. The same tool may work well in your hands, but poorly in mine. Therefore, this instruction is working, whether it will work for you depends specifically

[01:13] on you. So, once again, enjoy watching, and I will begin. The first and most important point is the coin on volumes. We do not trade coins with less than 100 million daily traded volume . I talked about how to select coins in detail

[01:29] be lazy, go and take a look at the channel. Well, right now we are focusing on the volume being more than 100 million. Anything lower simply doesn’t interest us. It is desirable that this volume be from 200-300 million per day. All these

[01:46] figures can be viewed both on Trading View and on the exchange itself. I personally watch it through the terminal that I trade, namely Tiger Broker. You can find the link in the description. Plus, thanks to this terminal, you can save

[01:59] up to 40% on trading commissions. You can also use our link to receive bonuses of up to $30,000 on the Bybit exchange upon registration. The second and very important point is that this coin must be in the game. What you trade must be

[02:14] What you trade must be active. It shouldn't be straight and not move at all. Not only should it be on volume, it should have a instrument you choose. If you choose an instrument that has

[02:27] less than 200,000 trades, it is most likely a dead instrument that has some volume. We need the instrument to have 2 million transactions. The more, the better. The more this instrument trades, the more

[02:41] stop losses there are, the more players there are. Therefore, a coin in the game means a very active coin. A coin that has grown by 30, 20-40% in a day. For example, the OGN tool suits us precisely according to this criterion. The [ __ ] tool

[02:56] also suits us. We also see that the UA instrument has grown rapidly. He is now standing in some kind of shopping mall. This tool also suits us. For example, the RS tool that we opened, this coin is not in play, it

[03:11] smoothly moves somewhere, there are no sharp active movements. The coin is not in the game. A coin in the game is a coin with high volumes, a large number of transactions, and which has moved a good percentage in a day, or

[03:26] which has high volatility. The third very important point. The coin we want to trade on a breakout level should have good visible levels that we want to trade. What does it mean? For example, right now I’m

[03:40] mean? For example, right now I’m looking at the history of the MGO instrument and want to find some levels that could be traded. Right now, of course, it would be possible to somehow pull this resistance level, this

[03:53] this resistance level, this one, but there is literally only one clearly visible level here. Here it is that there was one touch, a second touch and this exit could be traded. This is the only clearly

[04:08] visible level for long. There are also visible levels for shorts, where we have several touches. But right now our instrument is growing, and it seems logical to consider breakouts for long positions . However, we are also looking at the short, but

[04:23] we do not see any visible levels . The level is formed based on the highs or lows of a specific instrument. For example, here we open the watch. Here we clearly see that we have this maximum

[04:37] we have this maximum on the hourly chart. And we also see that there is some minimum. There is no directly obvious level here. We need a level that is clearly and perfectly visible, because if you

[04:49] try to stretch the level from the chart, believe me, other participants will not do the same . They just look and want to find what everyone will see, what everyone is trading. If you come up with something to trade, believe me, other

[05:03] participants won't find it, and your logic simply won't work. For example, there is a tool called UA. We see that the turnover is practically suitable, and the instrument is not bad in terms of the number of transactions. We see that the instrument has grown, and we

[05:15] see that this level, this maximum, is visible to everyone. Everyone can see this trade. And perhaps we will have a way out of this trade there by 20+. And yes, there is

[05:28] still some local level here. We also see this minimum. And this is the picture everyone sees. You are not making it up. It immediately catches the eye. that there is some kind of shot, there is some kind of trade and it is possible that there

[05:41] will be an exit either up or down. To make sure you remember at least something from this video right now, I'll open a position on the UA instrument, and later we'll figure out whether I did everything correctly or not. Here's another example of a level you can

[05:55] view. When you open the charts, you don't immediately see their levels somewhere, yes, you can somehow pull them out, but according to the FIRP instrument, in this picture we clearly see that we have this minimum. We see that

[06:08] we have hit each other again. And based on these two minimums, we can already assume that there is some level of support here. And we don’t need to extract this level from the chart; it’s immediately visible. The level being viewed is clear.

[06:23] However, what kind of cascades can be traded? A cascade is when there is one, second level of resistance. We enter on the breakout of these levels. We can trade in altcoins. For example, if we take a strategy for breaking through a level,

[06:37] the distance between, uh, these two resistance levels should be a maximum of half a percent. In this situation we have 1.5%. And this situation doesn’t quite fit into this system, because, yes, there are resistance levels. However,

[06:53] the cascade itself is wide here, and if we analyze the alto, it should be up to half a percent. If it is Bitcoin or Ethereum, half a percent. If it is Bitcoin or Ethereum, you can consider up to 0.1 02

[07:06] percent maximum. That is, the cascade should be beautiful, dense, it should not be wide. I'll show you an example. We have growth in the instrument, it is entering some kind of consolidation. And this cascade is an ugly

[07:22] cascade for breakdown. But if we have a situation where there is growth and then everything is practically all concentrated in one place, and here we have a really dense cascade, beautiful, when the distance between the maximum and the minimum is,

[07:38] on the alt up to 0.5%, this means that the cascade is really dense. This cascade is tradeable. If we have a distance, as in this case, there is 1.5%, that’s a lot. And with such a cascade it is already quite problematic to say what will be well broken through.

[07:53] The level being viewed must consist of two plus touches. The fourth very important point is trading before the level. Trading before a level is, to put it simply, just a smooth squeeze towards the levels as

[08:09] slowly as possible, when the candles start to move around right before the level. If we show this illustratively, then we have several levels. And that's how our price starts to set. It's just getting as close to these

[08:23] levels as possible. This is exactly what we need. For a perfect breakout, trading is required. Without bargaining, we can take a drastic approach. And there may not be a breakthrough as such, because all the forces will have already been exhausted by then. Therefore,

[08:39] trading for a good breakout is essential. Using a graph as an example, it might look like this. We have some level in history. We also see another touch. Our distance is perfect. And here we begin to

[08:53] smoothly and beautifully squeeze. The fifth point to consider when choosing a coin to trade is a smooth approach. We shouldn't have a approach. We shouldn't have a 3-4% increase in level there. If we find some

[09:07] situation and, let's say, we have some nice, cool trading spot there, and active movement immediately begins , the instrument flies there by 3%

[09:19] before the levels themselves are already there, well, the situation is not ours. We don't get into that situation . A breakout of a level is only traded if we approach that level smoothly. If we start to fly up sharply, the probability of a good breakout is greatly

[09:33] reduced. there, right up to half, because our long-term strength is already being spent here. Short sellers see this stick , start to exit these positions, and there are fewer stops there. The next very important point, as far as

[09:49] I remember, is the sixth one - good glass activity before the breakout. Our glass may be dead, for example, you can see a dead glass right now here. We have no movements, no purchases, no sales. The

[10:04] glass is as dead as possible, it stands still . Here is an example of an active glass, when we have movement, everything is being sold and bought somewhere, there is movement. For a good breakout there must be an active glass. Is the glass in the UAI tool active

[10:19] glass. Is the glass in the UAI tool active ? I would say somewhere in the middle, that is, not directly active, but not directly passive either. The next point, which is very important for a good breakout, but not mandatory, is a round number. If we

[10:32] find a cool setup, like for example with the UAI instrument, right now we've already found it. By the way, let's open the one-minute time frame to better show and tell you all of this. Here we have, yes, some

[10:48] good, cool maximum. We also see a local maximum, a second local maximum, that is, two touches. We see something similar to the trading, but we also remember that in general this whole situation is a trading after

[11:01] this impulse, and we would expect some more impulse, but in general locally this looks like what we need. However, there was a bit of a harsh approach here. Would it be worth entering a position here? No, because we flew up really sharply.

[11:15] If we approach smoothly now, it will be a pretty good situation. Let's look at the graph 0.34. Round. This means that most likely many will place their stops exactly at this round number. It's just the way it is in

[11:29] trading. Therefore, it is quite good to pay attention to the round figure when levels are broken. If we have a level, for example, of 0.3471, then it is likely that other traders will pay attention to this level; it is slightly

[11:44] less likely than the probability that they will pay attention to some round level and will trade it more actively . The next, probably the . The next, probably the eighth important step, is density at the

[11:56] level. It is desirable that when some levels are broken, we have the volume in the some levels are broken, we have the volume in the glass at this value. For example, we that we trade. Right now we are looking at the fact that we have in the order book a

[12:11] not very large order, but a relatively large order for this order book. 76,000 coins in relation to how much

[12:24] when this density is at a level, it is good. This means that at this level we have someone willing to sell. This means that if we break down this volume at a level, we can go further. And we have, so to speak, a high

[12:40] probability that when we analyze some large volumes at these levels, we already have people willing to buy at higher prices. That is, they have already come to terms with this price. Of course, I explained it a little unclearly, but the very presence of

[12:53] density at the level, I would say, adds to the likelihood of a good breakout. Well, the last, ninth point for selecting coins is to look at the history of breakouts. The most important point, uh, for this very strategy. We find some

[13:10] coin, we see some cool levels, we want to take and break through these resistance levels that we have already drawn. Let's take, for example, this graph that I drew. Right now we are at these

[13:24] resistance levels. Is it worth entering a breakout here? Yes. Why? Yes, because we look at history, we see that there were resistance levels, we see that there was momentum. This impulse will most likely be repeated. Each coin has

[13:40] its own movement style. If she hits it well the first time, she'll probably hit it well the second and third time. If a coin, for example, pins its levels, somehow poorly breaks through these levels and only then

[13:54] continues its movement, it is more likely that when some new levels are formed, it will do the same. And if you don't read the nature of a coin's movement, then most likely you won't make money in this market. Therefore, we must definitely look at

[14:10] history. We make sure that the history before the breakouts is good, beautiful, and that the setups are beautiful. And if we don’t have a history, then we shouldn’t expect a good breakout

[14:22] from this situation. In this case, we have a coin with no breakout history. We don’t see that we had any breakdowns. We just see a random crash, a stop in consolidation.

[14:36] And the only thing we can rely on here is this very situation. But here we see that yes, we were in consolidation, yes, we had some kind of high, but we called that high, we immediately rolled in and only then went to break through.

[14:51] And even then, it was ugly and jerky. To understand the story perfectly, you open a one-second chart, look at the moment with a breakout, and we need the breakout to be directly impulsive, within one second. Why does this breakdown

[15:04] occur? Yes, because there are stops of the participants, these stops are triggered, and an impulse occurs. The guys who are entering the breakdown here add fuel, and you get two fuels in one direction. However, in that

[15:18] case, this fuel will be there if the coin has such a character of price movement, if such a pattern of behavior of the participants. If this pattern is different and, let's say, we have short pattern is different and, let's say, we have short sellers pushing down, long sellers

[15:32] pushing up, then we have a cut at the levels, and no good breakout occurs. It is completely unclear what it will be like here. This is the first situation. It is impossible to even say here whether there will be a breakdown. Therefore, going through our

[15:45] list, for this coin we can say that the coin corresponds to the number of transactions. That is, the coin in the game is the level being viewed. This coin is suitable for trading because there is 0.3% between the levels here and 1.80 between the top ones there

[16:00] . But overall, between two, even three touches, we have an ideal situation. A trade is forming right now . Fits. Here we have a round number. Fits. There is density at the level. Fits.

[16:16] There is density at the level. Fits. There is activity in the glass. Eat. This coin is also not directly active, but nevertheless it has activity. Of all the points we mentioned, there is only one missing here. No breakout history. Because there is no

[16:31] breakout history here, we don't know whether the coin will breakout well here or not. The next section we will cover is the placement of pending orders, limit orders, and stop losses. When should we stop and when should we enter a position? Right

[16:48] now you can see that I entered this position in advance. However, how can I be sure that we will move forward? No way. It's practically at least have a good risk management ratio. At least there we lose

[17:04] 100, earn 300 dollars. In this situation, I don't watch it. I break the rules very badly. And in the long run, such traders will lose. However, I will you to enter a position very competently. Before

[17:21] entering a position, you need to pay attention to the glass. We may have some large volumes in the glass that can influence our entry. You also need to make sure that the glass is liquid. Let's say that in this situation

[17:36] we don't have any anomalous volume that would be very different. We don't see any super large volumes there, there are 10,000, 20. The glass is quite basic. However, there are situations when we may have

[17:52] some large, abnormal volume at the level. And how to enter this position? In all situations when we do not have any large volume at the levels, we will enter before the levels. We will

[18:05] enter before we start to break down. We will be the first in line to have our orders triggered. However, there is no need to go in too far in advance. We can, for example, as in this tool in the example, we can just barely reach

[18:21] the level, hit it and fly back. This is an extra stop-loss, so we need to enter literally one tick in advance, or directly at the first local

[18:33] level. Why will there be an error entering the last level? When we enter the last level, many people have already entered before us. And because they come before us, they create an avalanche of sales. And then our

[18:47] sale works. And it works at the very end. Because it triggers at the very end, we can get dragged through and a squeeze can occur. We wanted to open here, we will be opened here. Because of this, we get a much worse entry point in

[19:00] percentage terms. And if the impulse is conditionally like this , we will earn half as much . We don't need this. Therefore, in the most basic situations, we reach, so to speak, local levels in one or two ticks. If we have, for example,

[19:15] some kind of density at a level, let's assume that in the first local level we have a huge density, some kind of huge volume, and we don't understand how to get here. In this case, we will simply take a part, put it up

[19:29] to the density, there 30%, and put a part into the density itself. Well, we will put the rest of this density. If this density is located, for example, somewhere right

[19:41] here, and we are thinking about whether to enter this situation or not, I would personally throw part of it into the analysis of this density and part of it into these levels themselves and, perhaps, a small part right in front of the density itself. There is a very high probability

[19:55] that we will reach the density, hit, bounce, Vasya will take this volume and pull. Therefore, the most correct solution would be to enter density after density and into the levels themselves in some part. I'll give you all this in detail in

[20:11] Telegram channel. You can follow the link in the description to get the most detailed instructions. Everything I'm telling you now is written down on paper, point by point. If any of your points are not met, you do

[20:24] not enter the position. And so you will save your money, you will strictly follow these points, believe me, it is impossible to lose your deposit, and you will only earn money. However , you will most likely find yourself

[20:36] deviating from the system very often. We are all human, and unfortunately, we all break laws. Where will we fix the position? Let's say if we enter, if the entry point is clear, if there are no densities, we enter before the levels, one or two

[20:50] ticks before we enter, where we fix the position. If it's alta, we'll fix, uh, from 1%. On it's alta, we'll fix, uh, from 1%. On 1 no%te we cover 50% of our position. Next we simply distribute the limited editions in this range. That is, we

[21:06] range. That is, we can distribute from two to 3% there. And whatever part it takes, it takes. There is no such thing. On Bitcoin and Ethereum, we close positions from 0.3 percent and higher . You can use this data as

[21:21] a guide, but it’s not a panacea; everything is individual. Next, panacea; everything is individual. Next, what should be the basic stop-loss for what should be the basic stop-loss for Alta? For Alta it is 0.2%, for Bitcoin Ethereum it

[21:33] is 0.8, no more. That is, if you don’t understand something or something does n’t go according to plan, in any case, stop. Cue ether 0.8, viola 0.2%. That's all, nothing

[21:46] more. The risk-to-reward ratio for breakouts is 1 to 1. If you close a lot of stops, then taking into account the commission it will be 0.3-0.33, and taking into account the the commission it will be 0.3-0.33, and taking into account the breakouts it will be 1 +%. This ratio is

[22:01] 1:t minimum. At a distance, it is 1:she. Let's see how this situation worked out. There is a delay before the level here. Now this deferred application will work. You could either click with your hands, but it works. We enter before everyone else, an

[22:18] avalanche of those entering begins, stops start to be triggered, and movement begins. The movement is ongoing, some of our orders are closed by limit orders, and the rest we simply close at market price. What's important to note about this trade is that it

[22:32] to note about this trade is that it was also a round number of $1,580. That is, the very low, also a round number, two touches, trading, smooth approach. Everything was there to get into this position. A good history of

[22:47] breakouts, and the position once again worked well and yielded a profit. However, there are situations when the breakout does not occur at all. And here you need to understand when to exit the position. Here is an example of TRB. The instrument was actively growing, the instrument entered the

[23:02] trading market. There are two touches, there is a smooth approach. However, there is no movement here. The man entered some of it in advance, and added some of it right before the levels themselves. However, we see that as soon as we are taken into a position,

[23:17] there is a small upward impulse, no movement occurs, and it immediately exits. There is no point in sitting around waiting for something. Good breakthrough, it goes straight away. It's easier to go out, pay a little money there as a commission, and find another situation and make money from

[23:33] it, than to sit and hope for something . You can close the position manually or with a stop loss. However, I would not advise waiting for a stop, but exiting immediately when there is no movement. The market has certainly changed a lot lately,

[23:46] and in some situations you have to sit back and wait for events to develop. However, if we look at the history of a coin, how it breaks through, and look at the second chart, then we won’t have any thoughts of sitting around later. If a coin

[24:02] breaks through impulsively in history, then there is no need to sit in the coin. If the coin has previously been slightly slowed down by some stumbling blocks, then it is clear that it may be slightly slowed down by the levels again. However, there are

[24:16] some rules for closing positions manually specifically for this system. We exit the position if the print starts against us. That is, if we see some strong sales, for example, as in this case we see print. A print is

[24:29] some kind of large volume that flies by in a moment. And we see that there is some kind of large sale going on, it is going against us. We went long. This is a major sale. And when such prints go against us, we leave the position. We

[24:43] also exit the position if there is no upward impulse, uh, upward impulse, uh, good. Here we are, there was no good upward momentum. We are leaving the position. We also exit the position

[24:58] if some kind of attenuation occurs and the movement does not develop. We also exit the position if we have a spread gap, when it spread gap, when it seems like we have the price here at the moment,

[25:11] but for some reason we see that the price has already been recouped in the stocks . Here the spread broke. The spread is the difference between the buy price and the sell price. And right here we already see that they are buying at 1.571 and selling at 1.567.

[25:27] The spread is torn and it's thrashing around a lot. In this case, when we have a downward movement, we exit. If the spread breaks when we break into a long position, we also naturally exit. There is a neat, beautiful movement. The spread is starting to tear, it’s time to

[25:43] get out. When the spread breaks, it immediately indicates that we have a very strong struggle between buyers and sellers, and they are ready to sell and buy at inflated and deflated prices. However, in practice, not everything

[25:58] will always be perfect, not all trades will be perfect, and the setups won't be perfect either, but you shouldn't neglect some important points there. Let's say, show you is that there is a stick like this. And you can take my word for it that there

[26:13] were already good support levels there, and there is a good history of breakouts here. Once again we are forming such a level. One or two touches. Here we have a tiny little market. I'm entering again for a breakout of

[26:26] market. I'm entering again for a breakout of these levels. Round number 1.05. There is density at the level. It's not very big, but nevertheless I go before the levels themselves, because historically the instrument has already been going from this

[26:41] moment. And, by the way, how do we know that we have a high density? If this density is three times greater than the volume passing through in 5 minutes, this means that the volume passing through in 5 minutes, it is average. If it's smaller, it's small. The

[26:55] passing volume is visible in the clusters. Or you can look at Trading View, turning on some, uh, volume indicator. Here we have a low density, so I enter right before the local levels. We see that right now we are

[27:10] starting to sell prints. They analyze the density, an impulse comes. When the spread starts to tear, I get out. That's it, the deal is beautiful and technical. Plus $1,300. Here's another great Bitcoin deal. We see that Bitcoin

[27:26] has a cluster of some local levels. We see that I place my pending order before the first local level to be seen among those, and I begin to close this position from 0.3 percent and higher. It takes me to this

[27:41] position. There is a good impulse immediately. We see that the spread is starting to break. It would be possible to exit the position. I don't know why I'm standing here, but it was know why I'm standing here, but it was done very well nonetheless. plus

[27:53] $6,160. So, in principle, we have covered all the important points. There remains the last, fourth, so to speak, step. After we have completed our trade, we must leave a record, review it, then analyze it, and

[28:10] must also fill out a diary if there is any data there. There are a lot of diaries, for example, trader Makeman TMM. There you can very conveniently view , analyze, and record your transactions. You can make trades through OBS and then

[28:25] view them. And, naturally, you need to analyze your transactions and draw conclusions. In essence, this is a completely detailed guide, so to speak, a grail, which can be used, which can be applied, thanks to

[28:40] which many people made a lot of money in the twenty-second and two-third years. And some say that breakdowns don’t work now, they work. You just have to filter the market very heavily, and they will work

[28:54] in a certain market phase, when everyone starts, for example, trading on order blocks, setting their stops, and breakouts will start to work. Therefore, we all need to arm ourselves with this. This is worth knowing. I come to you from a small future. As you

[29:07] can see, we have approached this level quite smoothly here . This is a fifteen-second time frame. As a result, there was a really nice breakout of 5%. Now the situation looks like this. I just walked away from the

[29:20] monitor and went for a walk with the dogs. Unfortunately, none of this was recorded, but nevertheless the formation was beautiful. The only thing missing here was a good breakout history. But nevertheless, even neglecting one

[29:34] point, which I certainly don’t recommend doing, we managed to get more than 400 dollars from this deal, if we close it right now, of course, at the market.

[29:46] Although I'm already thinking that since I have this position open, it's worth at least waiting for an open, it's worth at least waiting for an update. That's another 500 dollars there. You can find the full file with all the details in the

[29:58] Telegram channel, so head over to Telegram, download, check it out, and if you found the video helpful, don't forget to like and subscribe. Good luck to everyone, profit to everyone, happiness, peace, kindness and bye to everyone. y