Support & Resistance Breakout Strategy

This strategy combines horizontal support and resistance with breakout confirmation. Identify key levels from swing highs/lows, consolidation, or pivot points. Enter when price breaks the level and confirms (e.g. retest, strong close). Reduces fakeouts by requiring confirmation.

Draw horizontal lines at recent swing highs and lows. Multiple touches strengthen a level. Use pivot points for intraday. Fibonacci retracement levels (38.2%, 50%, 61.8%) in trends. Round numbers can act as psychological levels.

Wait for a candle to close beyond the level. Enter on retest: when price breaks resistance, it may pull back to test it as support. Enter on the bounce. Or enter on the second candle that closes beyond the level.

Long: price breaks above resistance, pullback holds above level, enter on bounce. Short: price breaks below support, pullback holds below level, enter on bounce. Use candlestick patterns (engulfing, pin bar) at the level for timing.

Stop below the broken level (for long) or above (for short). Target: next level or 1:2 risk-reward. Use ATR to avoid stops that are too tight.