#BreakoutTradingStrategy

The "breakout" trading strategy involves identifying key levels of support or resistance and entering a position when the price of an asset breaks through these levels with significant momentum. Traders monitor periods of consolidation where the price moves within a narrow range, indicating a balance between buyers and sellers.

A bullish "breakout" occurs when the price exceeds a resistance level, signaling potential upward movement. Conversely, a bearish "breakout" happens when the price falls below a support level, indicating a possible decline. To confirm the validity of the breakout, traders often look for an increase in trading volume. This strategy aims to capitalize on the rapid price movements that follow the breach of an important level.