I know a lot of people who mostly trade breakouts. That can be a very successful strategy, and I've used it myself to good effect. But if you buy a breakout after it happens, you pay a "breakout premium"-- especially if you're buying option calls or puts. You'll get a much better price on options if you buy them *before* a breakout or *before* a major change in momentum. How do you do that? Know your levels!
Once you know how to identify the different types of , you can look to see where several different types of support or resistance coincide. Those will be key price points at which different types of investors who rely on different types of indicators will all buy or sell at the same time.