#BreakoutTradingStrategy breakout is when an asset price moves outside a defined support or resistance level with increased volume.
Following this, a breakout strategy is a popular trading approach used by active traders to take a position within this trend's early stages. This strategy is often the starting point for large price moves and increased volatility – when managed carefully, it can even help in managing risk more efficiently.
A breakout trade involves entering a long position after the asset price breaks above a resistance level, or a short position if it breaks below the support level. Once the asset trades beyond the perceived 'price barrier', volatility tends to increase and then the asset’s price usually trends in the breakout's direction