Breakout Trades

What is a breakout trade?

Eyad Tal avatar
Written by Eyad Tal
Updated over a week ago

A breakout refers to when the price of an asset moves above a resistance area (Long), or moves below a support area (Short).

Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will start trending higher (as seen in the picture below) and as traders, we can take advantage of this new pattern to maximize our profits.

For example, let's say we have placed an order for a long position for BTC/USDT at an entry price of 19,000, which is higher than the resistance price.

1) When BTC/USDT crosses the resistance price of 17,000 and reaches 19,000, we will enter the trade and place our Buy order.

2) As seen in the graph above we are going with the trend and are looking to place our Sell order at 23,000.

The idea is that the market trend will continue to rise in the breakout direction (Long) and we will sell at a profit.

With Cornix you can choose a 'Breakout' type trade when you wish to buy at a price that is higher (long)\ lower (short) than the current market price. (You can learn how to use the breakout feature on the web dashboard by following the Create Trade article).

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