#BreakoutTradingStrategy What is breakout trading?

Breakout trading is a trading strategy that seeks to take advantage of significant price fluctuations in a financial market. These fluctuations occur when the price of an asset exceeds its trading range.



The trading range of an asset refers to the price limits within which an asset tends to fluctuate over a certain period. This range could indicate a trend in a specific direction. Breakouts occur when the price of an asset surpasses a predefined level of support or resistance. This is when the breakout trading strategy comes into play. Successful breakout traders can recognize patterns and indicators that may suggest the likelihood of a price breakout.