Breakout
Price pushing decisively through a level it had been stuck below or above, often on rising volume.
A breakout happens when price clears a well-watched boundary, like a prior high, a trendline, or the top of a range. Volume matters. A move backed by heavy trading is harder to fake than one on thin liquidity.
The catch is the false breakout. Price pokes past the level, traders pile in, then it snaps back and traps them. Crypto markets, thin and easy to push, produce these often. Many traders wait for a candle to close beyond the level, or for a retest, before trusting it.
Related terms
Price levels where buying or selling has repeatedly stalled a move, marking floors and ceilings on a chart.
TrendlineA straight line linking a series of highs or lows to map the direction price is traveling.
Bull TrapA false upside breakout that lures buyers in, then reverses and leaves them holding losses.
VolatilityA measure of how sharply and how often a price swings, in either direction, over time.