#BreakoutTradingStrategy

A breakout trading strategy capitalizes on price movements when an asset's price "breaks out" of a defined trading range. Traders identify key support and resistance levels, which are price barriers that an asset has struggled to cross.

When the price moves decisively above resistance (for a long position) or below support (for a short position), often with increased volume, it signals a potential new trend. The idea is to enter the trade early in this new momentum, aiming to profit from the subsequent directional move. However, false breakouts are common, requiring careful risk management.