Breakout trading is a strategy based on price breaking through key support or resistance levels, profiting by identifying trend continuation signals. The core logic is: when the price breaks through historical highs or lows, it indicates a shift in buying and selling power, allowing for trend-following entry. Technically, it is necessary to confirm the effectiveness of the breakout with large bullish/bearish candles, and to verify trend strength with indicators such as increasing volume, moving average systems (like the 20-day moving average), or the opening of Bollinger Bands. In terms of risk, the probability of false breakouts is high (approximately 80%), so stop-loss settings (such as below trend lines or a multiple of ATR) and dynamic adjustments of take-profit levels (like a 3:1 risk-reward ratio) are necessary. This strategy is suitable for trending markets, but strict discipline is required to avoid subjective interference; the win rate is usually below 50%, but the profit per trade is significant.