#BreakoutTradingStrategy

Breakout trading is a strategy where traders enter a position when the price breaks above resistance or below support with high volume. It signals potential strong momentum in the direction of the breakout. Traders often set buy orders just above resistance or sell orders below support, with stop-losses placed just inside the range to manage risk. Confirmation through volume and technical indicators like RSI or MACD strengthens trade reliability. Breakouts often occur after consolidation or chart patterns like triangles or flags. This strategy suits volatile markets but requires discipline and quick execution to avoid false breakouts and maximize potential gains.