#BreakoutTradingStrategy A breakout strategy aims to enter a trade as soon as the price manages to break out of its range. Traders are looking for strong momentum and the actual breakout is the signal to enter the position and profit from the market movement that follows.

Traders may enter the positions in the market, which means they will have to closely monitor the price action, or by placing buy-stop and sell-stop orders. They will usually place the stop just below the former resistance level or above the former support level. To set their exit targets, traders may use classic support and resistance levels.

Before we go further, it’s a good idea to know what support and resistance levels are. Once you know that, it will become much clearer to see the price breakout from those levels.