#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 above a resistance level or below a key support level. Traders who employ 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 trend movement.