#BreakoutTradingStrategy Breakout strategy or breakout trading refers to when a trader buys or sells a financial security once it breaks an important support or resistance level. In a breakout trading strategy, traders identify financial securities that have been trading in range or consolidating for a while. Traders mark key support and resistance levels along with trend lines to identify potential breakouts.

In a breakout trading strategy, one may use indicators such as moving averages and also study candlestick patterns that can help in gauging the direction of the breakout. Traders also pay close attention to the volume of the security to confirm the breakout.

Breakout trading can be applied to various assets such as stocks, indices, commodities, and currencies.