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  3. Breakout

Breakout

A breakout is a price move beyond a previously observed support, resistance, range, or chart-pattern boundary, often considered alongside trading volume.

Defined termReviewed 16 July 2026

Related terms

Technical AnalysisResistanceSupportVolumeBreak and RetestSwing Trading

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure
Trading glossaryReviewed 16 July 2026

Definition

A breakout is a price move beyond a previously observed support, resistance, range, or chart-pattern boundary, often considered alongside trading volume.

In market context

Technical traders may interpret a decisive close beyond a boundary as evidence that the prior balance between buyers and sellers has changed. Some moves quickly return inside the range, producing what traders call a false breakout. Because boundaries are subjective and execution can slip during rapid movement, a breakout plan should define confirmation, position size, invalidation, and exit conditions before entry.

Source

Use the primary source for fuller regulatory or market context.

CME Group Education — Trend and Continuation Patterns

Educational risk notice

This material is general education, not personal investment advice or a promise of results. Markets can move beyond planned levels, and losses can exceed expectations when leverage, liquidity, gaps, or operational failures are involved.

Read the full risk disclosure

Related glossary terms

Selected from explicit term relationships and shared tags.

beginner3 min

Technical Analysis

Technical analysis studies historical price, volume, volatility, and chart behavior to describe market conditions and formulate rule-based trade decisions under uncertainty.

technical-analysis · strategyRead guide
beginner3 min

Resistance

Resistance is a chart area where prior selling or reduced buying has repeatedly slowed or reversed upward price movement within the selected timeframe.

technical-analysis · chartsRead guide
beginner3 min

Support

Support is a chart area where prior buying or reduced selling has repeatedly slowed or reversed downward price movement within the selected timeframe.

technical-analysis · chartsRead guide
beginner3 min

Volume

Volume is the quantity of units or contracts traded during a defined period under the reporting rules of a venue or data source.

markets · technical-analysisRead guide