Breakout trading is used by traders and investors to take a position within the early stages of a trend. Smart & auto forex breakout EA strategy usually get you in near the starting point of a major price move.
The key to making big money is getting aboard the right side of a major price movement. Then, as the market goes your way, you can strategically add to your position. It is wise to always practise sound money management. This can be achieved by implementing stops.
Breakout trading involves a stock or futures price that moves outside a defined support or resistance level with increased or heavy volume. After the breakout, you would enter into a long position if the price breaks above resistance.
You would enter into a short position if the price breaks below support. Many times you will see an increase in volatility, with prices usually moving in the breakout's direction.
The best traders and investors use the breakout trade to make hundreds of millions of dollars. This after starting with only a few hundred dollars. They really understand that all trading is based on probabilities. They know if you traded stock or future in the proper breakout point, the odds are in your favour every time.