Breakout

A breakout occurs when an asset's price moves beyond a defined support or resistance level, signaling a potential shift in market sentiment. If the price rises above a resistance level, it may indicate strong buying interest and the start of an upward trend. Conversely, falling below a support level suggests increased selling pressure and possible decline. Traders often watch for breakouts to identify new opportunities, as these movements can signal a change in the asset's current trading pattern. Breakouts can be accompanied by increased trading volume, adding confidence to the significance of the move.