Capitalize on explosive price movements. Identify when price breaches key 24H levels with volume confirmation.
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Volatility breakouts occur when price moves beyond a defined range with conviction. This strategy focuses on 24-hour highs and lows as key psychological barriers.
Watch for price compressing (tight range) before the move to the high/low.
Buy when price crosses the 24H High. Stop loss should be below the recent consolidation.
Breakouts rely on momentum. If momentum fades, close the position immediately.
The most common failure mode is a "fakeout" where price breaks the level then immediately reverses. Use tight stops.