#BreakoutTradingStrategy

Breakout trading is a strategy that focuses on entering a trade when the price breaks through a defined support or resistance level with increased volume. Traders aim to catch the momentum as the price "breaks out" from a consolidation zone or chart pattern like a triangle or rectangle. The breakout signals a potential strong price movement in the breakout direction. Stop-loss orders are usually placed just below the breakout level for upside trades (and above for downside ones). Breakout traders often use technical indicators like volume, Bollinger Bands, or moving averages to confirm signals and reduce false breakouts.