Breakout

A breakout refers to a pattern observed in technical analysis when the price of an asset surpasses a resistance level or drops below a support level on a chart. This breakout often indicates a continuation of the asset’s movement in the same direction. When a breakout is accompanied by significant trading volume, it suggests a higher likelihood of the asset maintaining its trend. Breakouts can be observed in various forms such as channels, ranges, and patterns like flags, wedges, triangles, or head and shoulders.