#BreakoutTradingStrategy

Breakout Trading Strategy (100 words)

Breakout trading aims to capture significant price moves occurring when an asset breaks above established resistance or below support, signaling potential continuation of a new trend. Traders identify assets consolidating within a range. They enter long positions on a decisive break above resistance (or short below support), often confirmed by rising volume, anticipating momentum. Stop-loss orders are placed just below the breakout point (for longs) or above (for shorts) to limit losses if the move reverses ("false breakout"). Profit targets are often set using the height of the prior consolidation range. It relies on momentum but carries risk of failed breakouts.