When price moves decisively through a defined support or resistance level, often accompanied by increased volume and volatility.
Breakouts signal that the balance between buyers and sellers has shifted. Traders use breakouts to enter in the direction of the new trend, placing stops just inside the broken level in case of a false break.
False breakouts - where price briefly pierces a level then reverses - are common, especially in low-liquidity conditions. Waiting for a candle close beyond the level or a retest of the broken level helps filter out fakeouts.