What is support and resistance breakout?

Your support is fundamental for the future to continue sharing the best free strategies and indicators. Support and Resistance Breakout is a strategy based on the famous indicator developped by Barry Stander in the 2004 for Metatrader 4. The version that i shows here is developped by Lennoi Anderson, 2015.

What happens if a resistance level breaks?

The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken support or resistance had been holding.

What happens if price breaks through a support or resistance level?

If price breaks through a support and resistance levelit is likely to continue until approaching another support or resistance level. Every swing point can be considered a potential support or resistance level, although major swing highs and lows hold more significance, as they are visible to higher time frame traders too.

What is a breakout in trading?

A breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points.