How does the "Breakout" strategy work?

The "Breakout" strategy in crypto trading is based on identifying key price levels that traders believe might be breached. When the price reaches a certain resistance or support level and breaks beyond it, this can signal further movement. Key aspects of the strategy include selecting the right levels and using stop-loss orders to minimize risks. Breakouts are often accompanied by increased volatility, creating opportunities for significant profits. However, false breakouts are also possible, so careful analysis and caution are essential.