#BreakoutTradingStrategy The breakout trading strategy is a technique that seeks to take advantage of strong price movements when it surpasses key support or resistance levels. Traders who use this strategy expect the breakout to indicate the beginning of a new trend and look to open positions in the direction of the movement.

In detail:

Identification of levels:

Support and resistance levels are identified on price charts.

Breakout:

When the price breaks these levels, either by exceeding resistance or falling below support, it is considered a breakout.

In summary, the breakout trading strategy is a way to seek opportunities in explosive market movements, but it requires careful identification of key levels, confirmation with volume, and effective risk management to avoid losses from false breakouts.