#BreakoutTradingStrategy Breakout or Trap? How to Understand the Real Market Momentum

Trading on breakouts is a strategy where traders enter the market when the price moves beyond an important level: either above resistance or below support. This can indicate the beginning of a strong movement and a chance to profit. But the problem is that not every breakout is real. Sometimes the price sharply moves beyond a level and then comes back — this is called a fakeout (false breakout). And it can lead to losses.