You must have come across the term ‘breakout' that is often used by technical experts. The term is used when the price moves through an identified level of support or resistance. A breakout is crucial for traders in making a decision to go long (buy) or short (sell) in case of a breakdown from the support zone. For a breakout to be relevant, it must be accompanied by rise in volumes on the advance and during the breakout. Traders rush to buy the underlying asset which could be an index or a stock when the price breaks above a level of resistance to take advantage of price rise. In case of a breakdown from the support zone, traders rush to sell the underlying asset to take advantage of price decline.