#BreakoutTradingStrategy
๐ฅ What is Breakout Trading?
Breakout trading means buying or selling when the price moves out of its usual range โ like breaking above a top line (resistance) or below a bottom line (support).
๐ How It Works:
1. Price moves between two levels for some time.
2. If the price goes above the top line, traders usually buy, expecting it to go higher.
3. If the price goes below the bottom line, traders usually sell, expecting it to fall.
๐ง Why Traders Use It:
It can help catch big moves early.
Breakouts can lead to strong price trends.
It works better if trading volume is high (more people are trading).
โ ๏ธ Be Careful:
Sometimes breakouts are fake โ the price moves out and then comes back.
It's important to use stop-loss to limit losses.