A breakout occurs when price moves beyond a defined support, resistance, or consolidation range. Traders may watch for a breakout above resistance or below support as a possible change in market behavior.
Confirmation
Some traders look for stronger volume, a closing price beyond the level, or a successful retest. These are methods of analysis, not guarantees.
Manage risk
False breakouts are common. Define the invalidation level, position size, and maximum loss before entering a trade, and avoid chasing a rapidly moving price.