A share market breakout represents a share price moving outside of a defined support or resistance level at an increased volume. Breakout traders typically enter long positions after the share price breaks above the resistance level and enter short positions after the stick breaks below the support level.
A breakdown in stock market is basically the opposite of a breakout. It is a downward move in the price of a security, usually via an unidentified level of support, which signifies a further decline in the security price. Stock market breakdowns commonly occur on heavy volumes, and the resultant move lower tends to be relatively quick and severe in magnitude. Traders can identify stock market breakdowns using technical tools, live chart patterns, moving averages and trend lines.