#BreakoutTradingStrategy

The breakout strategy or "breakout trading" is a popular tactic where traders look for decisive price movements beyond key levels of support or resistance. Imagine that the price of an asset has been moving within a narrow range, like a ball bouncing between two walls. When the price finally breaks through one of those walls (support downwards, resistance upwards), it is considered a breakout.

Traders who use this strategy try to enter the market right when the breakout occurs, hoping that the movement in that direction will continue strongly. This can generate significant profits, but it also carries risks if the breakout turns out to be false. It is crucial to confirm the breakout with trading volume and manage risk with stop-loss orders.