#BreakoutTradingStrategy

This strategy capitalizes on price movements breaking out of established support or resistance levels. Traders identify periods of consolidation where an asset's price is trading within a defined range. When the price decisively breaches these boundaries, often accompanied by increased volume, it signals a potential strong trend in the direction of the breakout.

The goal is to enter a long position when price breaks above resistance, or a short position when it falls below support, aiming to catch the early stages of a new, significant move. While effective, it requires careful confirmation to avoid "fakeouts" and often incorporates technical indicators like volume and oscillators for validation.