Breakout Trading: Strategies and Risks

Breakout trading is a popular strategy based on the assumption that the market will move in one direction after breaking through a key level of resistance or support. The main principle is to enter a trade when the price "breaks through" this level, with the expectation of further movement in the same direction. One of the most important aspects is selecting the right level for entry. However, it is important to remember that breakouts do not always lead to a sustained trend, and sometimes the price returns to previous levels. Therefore, it is important to consider the risks and use stop-losses to protect against unexpected fluctuations.