Trading World Champion reveals the BEST breakout strategy in 2026!

The perfect breakout trading strategy from myself, I explain you a lot of things. How you can create and especially where you can localize a good place for a breakout trade because many people choose it on the wrong places. And I explain you where's the white place? And what are the mechanicals you have to use for your breakout rate. I hope you love this video. I explain you everything very deep. I translated this video with AI. I'm not an English native speaker but I do my very very best. I think you will love it less.

A like here for me. Dear friends, a wonderful good day to all of you today. I want to explain things to you a bit more deeply and in greater detail on the topic of breakout trading. Because unfortunately there is a preconceived notion that there are setups that are always reliably effective. And it's important to make a clear distinction between breakout trading, trend following trading and counter trading. For me, these are the three most fundamental scenarios that I as a trader can look out for. And I have to say very clearly, if you're looking for breakouts, that means a market has to fall out of balance. And why does that happen? There are two reasons for this. The first reason is that we have a fundamental news event that causes a market to have very strong momentum. The second reason is that a market, for example, breaks out of a multi week high or multi week low or and that's exactly what I want to show you today. When a market goes out of balance, that means in terms of volume, it falls out of equilibrium. And that's what we're going to look at today. And I think this will be very, very exciting for you. So let's first classify two fundamentally different possibilities. One is we've had a market that has moved like this, for example, and then a message came, for example non farm payrolls or something similar. There's always a very accelerated movement in those cases. But is that truly predictable? I say very clearly no, because we never know how the market will ultimately react to a message to news. Now of course there are many people who claim yes, there was a range beforehand and then we already know in advance what the market is going to do anyway. I can say that unfortunately that's nonsense. What do I do when I'm looking for a trade after fundamental news, whether it's a follow up or a breakout, I wait to see if a consolidation occurs and only if a consolidation happens. And I see that the market has already. And this brings us to step two, perhaps broken technically interesting levels. Then I wait for the market to generate volume here again, and then with high probability, continues to trade in the direction of the trend. Often what happens then is there is another breakout above this first supposed high. But I don't consider this scenario to be truly effective. For me, it's effective when I prepare a market technically. Let's proceed as follows. We really like to trade using the volume profile. And the volume profile has what's called the value area high, value area low, and a point of control. Now, for example, we have a market that opens completely outside. And when a market opens completely outside, there is initially an imbalance. And now the question is, what happens next? Now let's imagine, for example, we had our closing price here, and now the market actually moves down here and closes the gap. And now it gets interesting for many people who think that if the market doesn't turn around here, it will go back into balance. And if it bounces off there, there's also often the scenario where the market runs down here and enters the value. And the moment it re enters the value area here, very often strong momentum arises. Maybe you've seen it often, that a market makes a nice reversal, but it happens very, very quickly. And the question always is, and this is the crucial point, I can promise you that is there here a fundamental base in terms of volume, or did the market rise very quickly here without any foundation? And then such levels become highly interesting for us because the probability that it breaks in here, that it breaks through the PoC and goes below the last value area is very high. So that's variant one for a breakout, a breakout within a balance. It's very, very difficult to trade. But definitely, if you understand the logic behind it, it's a highly interesting story. Let's move on to variant two. And this is a variant that also occurs very, very frequently. Before we take a closer look at the charts, let's imagine the following. A market has formed a balance, and within this balance the market had its trading open and everything is in equilibrium. That means here we have the trading open and the market is moving back and forth here. And suddenly the market pushes up here. So what happens here? The market falls out of equilibrium. That means nothing other than at this point here. Yes, traders will try to bring the market back into equilibrium because we know that markets need a lot of time. Markets need supply and demand, and that's why they feel very comfortable in such price ranges. But now the market does the following. It doesn't do this not back down, but instead it leaves here, market profilers would say it leaves a single print and then we have the indication that the probability is simply higher now that the market will continue to trade in a trend following manner here. And if it then moves above the absolute high, above the value area, you can assume that a breakout will occur there. And then you can expect the market to accelerate sharply again. So that's variant two. And this variant occurs much more frequently, but is usually not as aggressive as variant one. Let's take a look at the whole thing live to simply get an overview of when a market is likely to enter such a breakout scenario. And I've deliberately pulled up the weekly charts here along with their profile shapes. Right, and what am I doing now? Now I'm transferring two levels into the bigger picture at the top to show you where the market broke away. Once it was here at the low volume. And you can already see the market wanted to move back into acceptance. And now comes the most exciting part. And then the market ran back into this value area and it did so with momentum. That was exactly variant one that I just showed you. And look at what a great opportunity you have here. Pull back and then the thing breaks downwards and those are the best breakouts you can get because they really move very, very quickly. And most people always want breakouts only at the absolute high or the absolute low. But it's much nicer when a market. Let me just draw this out again a bit so we can see it once more to bring it back into our heads. So we were in a price range here for a very long time. And down here we had a fair price range that had previously occurred. So what does that mean for us? That means that the market up here had accepted the new prices. And if the market has accepted these new prices, then it's like the whole context. So the probability that will keep rising is simply to be viewed as long, higher prices, acceptance of higher prices, new fair values. And now the market does the following. All of a sudden it breaks back down here and moves into the old balance area. So what's going on now? What's the situation? It's very clear. All these market participants here, they're no longer in a good position. Suddenly they're underwater. And now comes the crucial part. We always think that we day traders are the be all and end all. And I want to raise your awareness about that a bit more. We make up maybe 1.5 to 2% of the market. The entire rest of futures trading is about hedging transactions. That means hedging, hedging portfolios of stocks. Hedging commodity positions, for example, to achieve price stability and so on and so forth. And this price stability, when it gets out of balance, the big market participants step in and open so called hedging positions, they move into the futures and that's exactly what leads to these rapid movements. And if we come back to this chart here, you can see it right away, alright? All the long positions that have been entered here, for example, in order to find this imbalance from the previous fair price discovery for themselves now have a problem. And that's why they have to suddenly dump their positions here. Otherwise they would be underwater with the asset they want to hedge, which had fair value here for a long time, or here they would suddenly be underwater with this asset, they would have unfair prices. And in addition, and this is what's interesting up here in this price range, they assumed we had new fair prices, which is why they were satisfied with their hedging. And at the latest here, absolutely at the latest here you see the plug being pulled and then that's exactly when these movements happen. And with that I want to make it very clear to you it's complete nonsense to think that markets only make rapid moves at highs or lows. It's much more important to look at something else. When does a market become unbalanced, for example? You can see that really well here too. And I definitely want to show you this as well. Take a look here in this price range where the market had accumulated volume for a long time, that was the 620 price range. Here the market simply had a fair price range, but then aggressive buying came in. You can see that here in the profile with the single prints and so on. It's P shaped. But what happened then the next day? And that's really, really interesting, we can see it here at the market open, the market went down and then moved over here. And at the moment it moved over here, it found acceptance again above this entire range. Yes. And then what often happens happened. All the market participants who had made their hedging trades, who assumed, oh, now there's a likelihood that the markets will go down again. Or perhaps a significant and fundamental piece of market news led directly to a complete and total misinterpretation of this fundamental news by the general public. This led to many people going short, essentially taking out insurance against falling prices and they had to cover their positions up here. And then such a breakout occurs. That's the result and that's the logic behind it. And you really need to imagine this logic in depth. And if you combine that with trading volumes at these price levels here and combine it with the footprint charts then you have a cool edge and that's how breakout trading works. That's the logic behind it and I hope you enjoyed that. I hope you like this simplicity of this actual complexity that you can really understand in depth what's actually happening here. And yes that's all that's happening. It's a market that's moving out of balance. It's often predictable if you look at where the markets are in terms of volume simply not well priced or where they are moving out of fair value price areas and if you combine that then you have breakout scenarios and you also have break in scenarios back into old value areas and with both approaches you can make money just as quickly although the break in scenarios usually have much higher risk reward ratios. I hope you enjoyed this. I hope it gave you some awareness and I was very pleased to present this to you.