Breakouts on low relative volume are more prone to failure, so the price is less likely to trend in the breakout direction.Ī breakout occurs because the price has been contained below a resistance level or above a support level, potentially for some time.Breakouts with relatively high volume show conviction and interest, and therefore the price is more likely to continue moving in the breakout direction.A breakout to the downside signals traders to possibly get short or to sell long positions. A breakout to the upside signals traders to possible get long or cover short positions. Breakouts provide possible trading opportunities.Breakouts can be subjective since not all traders will recognize or use the same support and resistance levels.A breakout is when the price moves above a resistance level or moves below a support level.