Breakout
Volume Price Analysis glossary · Support, Resistance & Breakout Mechanics
Definition
A price move beyond the boundary of a congestion zone, confirmed by above-average volume.
Breakout in plain English
Sometimes price gets stuck bouncing sideways in a tight range for a while — traders call this congestion, like a crowd milling around inside a fenced pen. A breakout is the moment price finally bursts out past the edge of that range. The key is that it should happen on above-average volume: lots of people trading confirms real crowd energy is behind the move, not just a random twitch. Without that surge in volume, a breakout is suspect — like a door swinging open with no one actually walking through it.
Learn these first
Practice Breakout
Related Volume Price Analysis terms
Volume Price Analysis practice questions · Volume Price Analysis flashcards · Volume Price Analysis study guide