#BreakoutTradingStrategy

Breakout trading targets price movements beyond key support/resistance levels.

**How It Works:**

1. **Identify Consolidation** - Spot tight ranges (channels, triangles)

2. **Confirm Volume** - Breakouts need rising volume for validity

3. **Enter Early** - Buy/short when price clears the level with momentum

4. **Set Stops** - Place stops below breakout point (long) or above (short)

**Key Tools:**

• Horizontal support/resistance

• Bollinger Band squeezes

• 2-5% penetration rule

**Advantages:**

✔ Captures strong momentum moves

✔ Clear risk/reward setup

**Risks:**

❌ False breakouts occur often

**Best For:** Traders who can act quickly on volatility.