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.