Final answer:
The statement is true; volume is an important confirmation tool in trading to determine the legitimacy of breakouts from support or resistance levels.
Step-by-step explanation:
The statement regarding volume as a confirmation on breakouts is indeed true. In the context of trading and technical analysis, when a price moves above a resistance level or below a support level, it's considered a breakout. Traders look at the volume during these breakouts to ascertain whether the move is supported by a significant number of participants.
A high volume suggests a strong commitment from buyers or sellers to the price move, which may indicate the breakout is genuine and has a higher probability of being sustained. Conversely, if the volume is low, there is a chance that the breakout is not supported broadly and might be a false signal.