#BreakoutTradingStrategy

Breakout trading involves entering a trade when the price breaks past a key support or resistance level, often accompanied by higher trading volume. This breakout suggests the start of a strong price movement in that direction. Traders look for chart formations such as triangles, flags, or consolidation ranges to spot potential breakout points. To limit losses, stop orders are placed just outside the breakout area. The goal is to capitalize on the early phase of a trend for maximum gains. Since false breakouts can happen, traders rely on volume and momentum signals to confirm the move and reduce risk.