#BreakoutTradingStrategy

**Breakout Trading Strategy **

Breakout trading involves entering a position when price breaches a key support/resistance level with increased volume. Traders target breakouts from **consolidation patterns** (e.g., triangles, flags) or **all-time highs** for momentum plays. A valid breakout requires **confirmation**—closing above resistance or below support—to avoid false breakouts. Common indicators include **volume spikes, Bollinger Bands expansion, and RSI >60 (bullish) or <40 (bearish)**. Stop-losses are placed just outside the breakout zone to limit risk. This strategy thrives in **high-volatility markets** but risks whipsaws without proper confirmation. Always combine with **risk management (1-2% per trade)**.