A stock price moving outside a defined support or resistance level with increased volume. A breakout trader monitors securities that have been resistant to moving above defined price level and waits for it to move beyond its previous resistance point. Then the trader enters a trade in the breakout direction, making the assumption that the price will continue to move rapidly.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Breakout Trading.