#BreakoutTradingStrategy The Breakout Trading Strategy is a popular technique used by traders to capitalize on significant price movements that occur when an asset breaks through key support or resistance levels. A breakout indicates a potential shift in market sentiment, often followed by increased volatility and volume. Traders enter positions when the price “breaks out” of a defined range, expecting momentum to continue in the direction of the breakout. This strategy works best with strong technical analysis and proper risk management, like stop-loss orders. Breakout trading can be used in stocks, crypto, and forex markets to catch early trends and maximize profits.