Breakout Strategy - You're Trading at The Wrong Time! - Video

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Breakout trading is one of the best ways to trade as price moves quickly after a breakout. A breakout is an asset price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the price breaks above resistance or enters a short position after the asset breaks below support. Once the asset trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout's direction. The reason breakouts are such an important trading strategy is because these setups are the starting point for future volatility increases, large price swings and, in many circumstances, major price trends.

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