#BreakoutTradingStrategy The breakout strategy in trading occurs when the price of an asset moves beyond a certain level of support or resistance with increased volume. As a result, the breakout strategy is a popular trading approach used by active traders to take a position in the early stages of this trend. RJO University Basics of Breakout Trading

If you are a futures trader, this is a mantra that should serve you well when it comes to trading breakouts. The earlier you can identify a legitimate price trend and enter a position, the greater the potential return from your trades.

Experience is needed to distinguish a legitimate breakout from a false one. It is also not easy to set smart price targets and stop losses. To do this, you will need some basic practical knowledge of the principles and strategies for breakouts.

Breakout trading occurs when the price of a given asset exits the established trading range, usually accompanied by an increase in volume - a long position when the price breaks above resistance, and a short position when the price breaks below support.