What is Breakout?

In technical analysis (TA), a breakout is a technical pattern that forms on a chart when an asset moves above a resistance level or below a support level. The price of an asset will often continue trending in the direction of the breakout. When a breakout is accompanied by high trading volume, it signifies a higher chance the asset will continue trending in the same direction, as opposed to a breakout with low trading volume. A price breakout sometimes occurs as a result of a channel, range, or pattern such as a flag, wedge, triangle, or head and shoulders.