{"slug":"breakout","term":"Breakout","category":"Technical Analysis","definition":"A breakout is price closing beyond a level that repeatedly held — a resistance, a range boundary, or a pattern edge — ideally on rising volume. It signals that one side has absorbed the orders defending the level. Real breakouts follow through; failed ones snap back and trap everyone who chased the candle.","street":"The breakout candle is the most expensive place to buy — everyone sees it, and half the time it's bait.","depth":["Grade a break on three things: a candle close beyond the level on your trading timeframe (wicks don't count), volume expanding versus the sessions before it, and where it launched from — a break out of long, tight compression travels further than one popping mid-trend. In perps, add positioning: if funding is already crowded long before the breakout, the move is running on borrowed fuel and the squeeze risk points back down.","The breakout candle is the crowd's entry, which makes it someone bigger's exit — worst fill, tightest odds, stops stacked predictably below the level. False breaks exist because that stack is liquidity worth hunting. The patient versions pay better: buy the retest of the broken level, or the break-and-hold where price consolidates above it and your stop sits under the reclaim. Missing a runner that never pulled back costs you nothing; funding a fakeout with market orders costs real money."],"live":{"label":"Screen by volume, ATR% and EMA position","href":"/tools/scanner?tab=screener"},"related":["retest","support-resistance","liquidity-sweep","open-interest"]}