#BreakoutTradingStrategy The Breakout Strategy: What is it and why do experts love it?
Imagine a river whose water level has been very stable, moving between two well-defined banks. Suddenly, a great storm causes the river to rise, breaking one of those banks and flowing powerfully in a new direction. In trading, the breakout strategy is just that: looking for when the price of an asset (be it a stock, cryptocurrency, or currency) "breaks" key levels where it has been "stagnant".
Experts love it because, in theory, it allows you to enter right at the beginning of a strong movement. These "key levels" are usually:
* Supports: a minimum price that the asset has had difficulty breaking below.
* Resistances: a maximum price that the asset has had trouble surpassing above.