#BreakoutTradingStrategy Explained in Simple Words Everyone will Understand

Breakout trading is a strategy where traders enter a position when the price moves beyond a key support or resistance level with strong volume. The idea is to catch momentum as the price "breaks out" of a range and starts a new trend. Traders often use tools like trendlines, moving averages, and volume indicators to identify potential breakout points. Stop-loss orders are usually placed just below support (for long trades) or above resistance (for short trades) to manage risk. Breakout trading works best in volatile markets and during high-volume periods, like after major news or earnings releases. Timing and confirmation matter.