An easy Forex system that is used by Forex traders is the price breakout strategy. You have probably heard of "buy low and sell high". Nevertheless there are times when a Forex trader actually wants to buy higher while selling lower. A breakout system does just that and it tends to work best while volatile market conditions or in strong trends.
Definition of a "Breakout"
It is a market price movement through a spotted level of support or resistance that is normally followed by strong volume and increased volatility. Forex traders will buy the underlying asset if the market price breaks above a level of resistance and sell when it breaks below support.
A breakout system is most commonly used to refer to a case where the market price breaks above a level of resistance and heads higher, rather than breaking below a level of support and heading lower. When a resistance level is broken, it is viewed as the next level of support if the asset experiences a pullback most Forex traders make use of chart patterns and other technical tools like trendlines to detect possible candidates which are likely to break through a support or resistance level.
In the following video you can get some more information about how you can trade a Breakout.