#BreakoutTradingStrategy Breakout trading is all about catching strong moves as they happen.
This strategy focuses on price breaking through key support or resistance levels — often after periods of consolidation. When the breakout happens with high volume, it can signal the start of a new trend.
Traders usually place buy orders just above resistance or sell orders just below support. Stop-losses are placed just inside the range to manage risk in case of a false breakout.
Breakout strategies work best during high-volatility sessions and on assets with strong momentum. Tools like volume indicators, trendlines, and Bollinger Bands can help confirm a real breakout.
It’s a fast-paced approach that requires quick decisions, but with the right setup, breakout trading can capture powerful price moves early.