What is Breakout?
A move out of a range or technical level, often on rising volume.
A breakout is only confirmed by persistence. Price can poke through a level, fail and return inside the range — a false breakout, and a common trap.
Volume is the usual corroboration: a break without volume is easier to reverse.
Related terms
- Trading rangeTechnical analysis
A period where price stays between a support and a resistance level.
- ResistanceTechnical analysis
A price area where selling has repeatedly capped rallies.
- Trading volumeTrading
The value traded over a period, usually 24 hours; a measure of interest and turnover.