Glossary / Price action

Breakout

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A flowing ice-blue glass ribbon rising and dipping through empty space, an unlabeled picture of price in motion.
Illustration of the idea, not a market chart and not a result.

Price moving and closing beyond a defined level, range or pattern boundary.

How traders use it: Some trade the break directly; others wait for the retest. The candle close beyond the level is the usual minimum evidence.

Common mistake: Entering on a wick through the level, before the close.

Related: Failed breakout · Retest · Close significance

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.