#BreakoutTradingStrategy

The **breakout trading** consists of taking advantage of price movements when it surpasses key levels of support or resistance, which often indicates the beginning of a new trend. Traders seek to enter the market just after the breakout to benefit from the momentum. This strategy uses charts and technical tools such as channels or candlestick patterns to identify entry signals. Although it can be profitable, it requires confirmation to avoid false breakouts and to use stop loss to manage risk. It is popular in assets with high volatility, such as stocks and cryptocurrencies, and is often combined with volume analysis to validate the strength of the breakout and improve the accuracy of trades.