It's tricky. Usually, people trade in the direction of a breakout after it has already occurred, expecting the price to rise or fall further. In many cases, the breakouts tend to be false, and traders who place tight SLs tend to lose money quickly. To handle this, you could place an SL entry below the low/high depending on whether it's a bullish/bearish breakout. This SL entry will be triggered if the breakout is false.
So, if the breakout is for real, you make money on the original breakout trade, and if it is false, your SL entry could help you recover your losses from your earlier trade. Also, it helps to trail SLs tightly in such trades as the failure rate tends to be high.
