#BreakoutTradingStrategy Breakout trading strategy focuses on entering a trade when the price breaks above resistance or below support with high volume. This signals a potential strong move in the breakout direction.
Key elements:
1. Identify key levels – support/resistance or chart patterns (triangles, flags).
2. Wait for confirmation – volume spike or candle close beyond the level.
3. Set stop-loss – just below support or above resistance to manage risk.
4. Target profits – based on risk/reward ratio or previous price swings.
Breakout trading works best in trending or volatile markets and requires patience and strict discipline.
