// Definition
A breakout is when price moves and closes beyond a support, resistance or trendline that had been holding it.
Explained simply
A breakout means the side that was defending the level has given up, at least for now. Breakouts can start strong new moves because many traders enter at once.
Not every breakout is real. A real breakout usually closes clearly beyond the level, often with a big body candle and above-average volume.
Tip
Wait for a candle close beyond the level. A wick through the level is not a breakout.
Learn it on a real chart · EP 02Support & Resistance: How to Draw ThemWatch the free lesson →
For education only, not financial advice. Trading is risky and you can lose money.