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Breakout

Breakout – A strategy that enters when price “breaks out” of a defined range or level. Specifically, it buys when price moves above resistance or sells when it falls below support. Automated breakout traders monitor recent highs/lows or chart patterns, then trigger on a breakout candle. For example, an MQL5 EA might check if the latest bar’s high exceeds the previous N-bar high (if (High[1] > Highest(High, N)[1])), then use Trade.PositionOpen() or OrderSend() to open a buy. A cTrader cBot could do similarly with if(Bars.Last(1).High > Bars.Range(10).Max(x => x.High)) ExecuteMarketOrder(TradeType.Buy, SymbolName, vol);. Backtrader strategies might use cerebro.add_signal() for a breakout indicator. The idea is that breaking a range often leads to a new trend, so robots capture the early stage of that move. The strategy needs careful exit logic (e.g. reversing if a false breakout occurs) and often uses stop-loss orders to manage risk.