Buying breakouts is an effective way to capture quick gains. When a coin crosses above a strong resistance level, often times the price jumps significantly until it forms a new resistance. Being able to predict these breakouts is one of the most important things to learn as a novice trader. The first step is understanding the chart formation. Charts form patterns that show bullish or bearish trends. After determining the trend, it is important to find the resistance levels and place your buy orders above the resistance levels. You only want to buy into the trade if the breakout is confirmed and that can only be done with a limit order about the resistance.