#BreakoutTradingStrategy

A breakout strategy in trading is when an asset price moves outside a defined support or resistance level with increased volume.

Following this, a breakout strategy is a popular trading approach used by active traders to take a position within this trend's early stages. This strategy is often the starting point for large price moves and increased volatility.

A breakout trade involves entering a long position after the asset price breaks above a resistance level or goes short if it breaks below the support level. Once the asset trades beyond the perceived 'price barrier', volatility tends to increase. The asset price will then trend in the breakout's direction.