Resistance Breakouts The resistance breakout is a very straightforward trade setup that utilizes the many resistance levels that occur within all charts. The setup works best in strongly up trending markets and occurs where a clear level through which price has failed to penetrate on several occasions has formed, giving rise to the resistance level itself. Finally price builds up enough energy to punch up through the resistance level and continue the trend. The principles of the resistance breakout form the basis of many other breakout trading strategies e.g. ascending triangles or channel breakouts and hence all are really just a variation on a theme of the classic resistance breakout trade. Check out the video below for further explanation.