#BreakoutTradingStrategy

A breakout strategy targets assets piercing established support/resistance levels, signaling potential strong new trends. Traders anticipate significant price moves fueled by increased volume and momentum.

**Execution:**

1. **Identify Key Levels:** Spot consolidation patterns (channels, triangles, ranges) with clear boundaries.

2. **Confirm Breakout:** Price must close decisively *beyond* the level with surging volume (reducing false break risk).

3. **Entry:** Buy above resistance / sell short below support. Some wait for a retest of the broken level for confirmation.

4. **Stop-Loss:** Place below the breakout point (long) or above it (short) to limit losses if the move reverses.

5. **Profit Target:** Use technical tools (e.g., measured move of prior range) or trailing stops.