Breakouts occur when the price moves beyond a significant support or resistance level, often accompanied by increased volume. To trade breakouts effectively, identify key levels where price has struggled to break through. Use tools like trendlines, rectangles, or consolidation patterns to spot potential breakout zones. Wait for confirmation—a strong candle closing beyond the level—to avoid false breakouts. Place your stop-loss just below the breakout level and aim for targets based on the next resistance or Fibonacci extensions. Breakouts can be highly profitable if traded with proper risk management and a clear exit strategy. Strike when the market breaks free.