#TrendTradingStrategy

Breakout trading is a strategy that involves taking advantage of sharp price movements when an asset surpasses a key support or resistance level. In other words, the goal is to enter a trade when the price exits a defined range and is expected to continue moving in that direction.

1. Identification of levels:

Important levels of support (minimum price) and resistance (maximum price) are identified on the chart of an asset.

2. Wait for the breakout:

Wait for the price to exceed or break one of these levels, confirming that the movement is real and not a false signal.

3. Enter the trade:

Once the breakout is confirmed, a trade is opened in the direction of the movement.

4. Risk management:

It is crucial to set stop-loss orders to limit potential losses and take-profit orders to secure profits.