Forex breakouts trading can be useful for position traders as they can signal the start of a new trend. Breakout traders using this technique are attempting to open a position in the early stages of a trend. A breakout is where the price moves outside defined support or resistance levels (preferably confirmed with increased volume). The idea behind trading breakouts is to open a long position after the price breaks above resistance or open a short position when the price breaks below support. To successfully trade breakouts, you will need to be confident in identifying periods of support and resistance.