A breakout trading strategy focuses on making profits from the market when a selected currency pair moves outside of a predefined trading range. Of course breakouts occur all of the time in the market and the definition of a breakout will vary from trader to trader. However, most traders of the Foreign Exchange markets will make use of some form of breakout strategy as part of their approach. This is because breakouts are not only common but a highly profitable strategy to trade that often yields a high level of trading profits. This is because when the markets break a range then commonly, the momentum that has cause the break will continue. By identifying where a breakout is likely to occur, traders can then position themselves in the market for these big moves. From these directional moves you can ride the trading position and then get out so as to make a big chunk of profit.