#BreakoutTradingStrategy
In simple words, a risky move that mainly involves analyzing trends of breaks of support or resistance levels. It requires experience, practice, and a good amount of study. And even with all of this, there are still chances of failure.
Traders using this strategy monitor charts and indicators to detect these breaks and act quickly, taking advantage of the subsequent price movement; that is: it requires that the timing is correct and that there is some dedication from the trader to make the moves quickly. It is not an amateur job.
The advantages are obvious: high profits when identifying the right moments and the possibility of application on a short or long-term basis. Moreover, having an understanding of emerging movements allows for more strategic early entries.
Among the disadvantages, as already described: attention must be constant, as timing is key. Additionally, there may be false breaks, or breaks that do not generate a continuous trend, which invalidates the strategy as a whole.
In summary, high risk, high reward. Or high losses, if falling into traps.