#BreakoutTradingStrategy The breakout trading strategy involves entering trades when the price moves beyond a defined support or resistance level with increased volume. Traders watch for periods of consolidation when the price range tightens and then wait for a breakout that indicates strong momentum. A successful breakout signals the start of a new trend, offering potential profit opportunities. Traders often use technical indicators such as Bollinger Bands, volume spikes, or trend lines to confirm breakouts. Stop-loss orders are typically placed just below the resistance level (for long trades) or above the support level (for short trades) to manage risk.