Breakout
Breakout refers to a stock price, which breaks identified support or resistance level.
However, this term is much more used to describe the situation when a price breaks trough a resistance level and heads higher. This breakout is followed by heavy volume and volatility.
When there is a breakout seen on the chart, that broken resistance level will be seen as a new support level when the stock begins to fall.
| Related Terms: Buy Break Buy Stops Above Breakout Trader Wedge |
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