#BreakoutTradingStrategy The Breakout Trading strategy is a popular and effective approach that seeks to capitalize on significant price movements that occur when a financial asset (such as a stock or cryptocurrency) breaks (or "breaks") above a resistance level or below a key support level. Traders employing this strategy identify periods of price consolidation or narrow ranges, where the asset moves within well-defined limits. The premise is that once the price decisively surpasses one of these levels (ideally accompanied by an increase in trading volume), this indicates strong buying or selling pressure that is likely to result in a new trending move. Entry is made as soon as the breakout is confirmed, and profit targets are set based on the width of the previous range or the next support/resistance levels, while stop-losses are placed just inside the broken level to limit losses if the breakout turns out to be false. This strategy is particularly suitable for volatile and trending markets, as it seeks to capture the onset of large price impulses.