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Introduction To Simple Breakout Strategies

There is more than one way to trade a breakout, of course. Some traders will enter a trade on a breakout and then hold the trade for more than a few days as a swing trade if they believe a trend is forming in the direction of the breakout.

Intraday traders will often take a breakout trade and actually use the breakout as an opportunity to scalp anywhere from 10 to 60 pips or so. 

If you want to enter in breakout trade, you should refer to


Traders will enter the breakout trade at different times and will follow different rules of entry, exit and stop setting. However, nearly all successful traders will incorporate breakout strategies into their trading plans one way or another.

There is no "one correct way" to trade breakouts, of course, so you will need to discover which method is the best for your, personality, and the level of risk and patience you are able to provide while waiting for a breakout to occur!

First, review what a breakout is. In general, a breakout is when a currency pair makes a move across a support or resistance point. It "breaks through" the support or resistance level and breakout strategy is a system where A breakout occurs when the price breaks a significant high.

Another breakout occurs when the price breaks a significant low. The reason is momentum-traders use this system because in price action based trading (trading that does not rely on the over-use of technical indicators).