How breakout works in technical charts, chart is attached
ENGINERSIN
A breakout occurs when price decisively moves above an important resistance level.
It indicates that buying pressure has overcome selling pressure at that level.
A strong breakout is usually supported by a large bullish candle and higher volume.
The previous resistance can often become a new support zone after the breakout.
A breakout followed by a pullback and successful retest gives stronger confirmation.
If price sustains above the breakout level, the probability of further upward movement increases.
A false breakout occurs when price moves above resistance but quickly falls back below it.
Therefore, traders should look for price sustainability, volume, and retest confirmation before considering a breakout reliable.