Technical Analysis
Breakout — Definition & Example
A move where price decisively exits a prior range, support, or resistance level — often with volume confirmation.
A breakout signals the start of a new trend or extension of an existing one. Quality breakouts are decisive (no quick reversal back into the range), volume-confirmed (large participation), and from a meaningful structural level. The first pullback after a breakout often offers the best entry — chasing the initial breakout itself is a common FOMO trap.
Example
NIFTY has ranged 24400-24600 for two weeks. It closes at 24620 on heavy volume, breaking the upper bound. A long entry on the first pullback to 24600 (former resistance, now support) is a textbook breakout-retest play.
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