What Is Breakout? Meaning & Example
Definition
A breakout happens when price moves decisively beyond a support or resistance level or out of a range. Breakouts on strong volume are often seen as more convincing.
Related terms
Resistance is a price area where selling pressure has tended to stop advances. A break above resistance can signal a new move higher.
VolumeVolume is the number of shares, contracts or coins traded in a given period. Volume helps show how much participation and conviction sits behind a price move.
SupportSupport is a price area where buying interest has tended to stop declines. Traders watch support levels for potential bounces or breakdowns.
What is Breakout?
A breakout happens when price moves decisively beyond a support or resistance level or out of a range. Breakouts on strong volume are often seen as more convincing.
Can you give an example of Breakout?
A stock closing at $52 after months capped at $50, on double its usual volume, is a breakout.