Definition of Breakout
A price movement through a defined level of support or resistance, usually accompanied by increased volume and volatility. Breakout traders enter positions when the price decisively moves beyond a key level.
At a glance
Term
Breakout
URL slug
breakout
Category
General
Short answer
A price movement through a defined level of support or resistance, usually accompanied by increased volume and volatility.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Breakout” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Breakout” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Breakout” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
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FAQ
A price movement through a defined level of support or resistance, usually accompanied by increased volume and volatility.
Knowing the precise definition of “Breakout” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Breakout” as loose slang while your broker/platform specification defines it more narrowly.