#BreakoutTradingStrategy Breakout trading is a strategy that involves entering a trade when the price moves beyond a defined support or resistance level with increased volume. Traders anticipate strong momentum following the breakout, aiming to capitalize on the new trend. This strategy works well during periods of high volatility and is often used with chart patterns like triangles, flags, or rectangles. Key tools include volume analysis, Bollinger Bands, and moving averages. Risk management is critical—false breakouts can lead to losses, so setting stop-loss orders just below support or above resistance helps limit risk. Timing and confirmation are essential for successful breakout trades.