#TradingStrategyMistakes

📈 Breakout Trading Strategy – An Overview

Breakout trading is a popular technical analysis-based strategy where traders aim to enter a position when the price breaks through a key level of support, resistance, or a chart pattern with increased volume. The core idea is to catch the start of a new trend (either bullish or bearish) as momentum picks up after the breakout.

🔍 Key Concepts

Breakout: A price move beyond a defined support/resistance level or chart formation (like triangles, flags, or ranges).

Volume Confirmation: A spike in trading volume often confirms the breakout's strength.

Volatility: Breakouts typically occur after periods of low volatility or consolidation.