Investing Terminal
GlossaryBreakout
Technical Analysis

What Is Breakout?

Definition and plain-English explanation of "Breakout"

Breakout — Technical Analysis illustration

A breakout occurs when a stock's price moves above a resistance level or below a support level with strong volume. Breakouts often signal the start of a significant new price move. Traders buy breakouts above resistance hoping for continued upside momentum. False breakouts — where the price quickly reverses — are a common risk.

Related Terms

Browse by Category

Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.