Breakout

A breakout is a price move beyond an established support, resistance, or chart-pattern boundary, typically on higher volume, which traders read as a signal that a new trend may be starting in the direction of the break. Breakout traders aim to enter early in this new move, often using a stop or pending order placed just beyond the level. Not every breakout follows through — a false breakout (or "fakeout") reverses back inside the prior range shortly after triggering, which is why many strategies wait for a confirming retest of the broken level before committing full size.