Breakouts

A breakout is the moment price moves decisively beyond a support or resistance area or a trendline, resolving a period of balance. This article explains what counts as a breakout (a close through the zone, not a passing wick), the role of volume and the retest, why broken levels flip role by polarity, and — crucially — the false breakout: why price so often pokes through a level and snaps straight back, and why a breakout is an event to observe rather than an instruction to act.