Stock Term – Breakout
February 11, 2009 at 7:17 am · Filed Under Terminology
Breakouts are simply price moves above or below a level of support or resistance. I’ll usually call a breakout that falls through resistance a “breakdown” for clarity. I’ll also tend to call things “breakouts” only if they’re supplemented with significantly higher than average volume. These are the things that kick off new trends, so needless to say they’re important to watch for.
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