Breakout

Updated 2026-09-20

Definition

Price leaving a support or resistance area, or a range.

Why it matters

It can continue or turn out false. To tell them apart what counts is the close beyond the level, the candle's strength and the retest. Entering at the first touch is the most common way to end up in a false break.

Practical example

Price closes at 1.1058 above a 1.1050 resistance with a full-body candle: a more credible break than a mere wick.

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Educational content, not financial advice. Trading involves risk.