Breakout
When price pushes decisively through a defined level of resistance (or support), often on rising volume, signaling a potential new move.
A breakout is the moment price clears a barrier the market has respected — the top of a base, a triangle's trendline, a prior high. It matters because it can mark the start of a fresh trend as trapped sellers cover and new buyers pile in.
Volume is the key confirmation: a breakout on heavy volume is more credible than one on light volume, which is prone to failing back into the range (a 'fakeout'). Many traders also watch for a successful retest of the broken level.
On StockSetups
Breakouts are the backbone of StockSetups' four lanes: setting up (coiling), breaking out (clearing resistance now), broke out (already cleared), and retesting. The 'broke out' and 'retesting' lanes are on the free board.
See breakout setups live →Frequently asked
What makes a breakout reliable?
Higher-conviction breakouts tend to come from longer, tighter bases, clear a well-tested level, and fire on a clear surge in volume. A breakout on weak volume is more likely to fail back into the range.
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