Breakout (technical analysis)
Topic: Finance
From HandWiki - Reading time: 1 min
Short description: Term in technical analysis
 | This article needs additional citations for verification. (July 2010) (Learn how and when to remove this template message) |
A breakout is when prices pass through and stay through an area of support or resistance. On the technical analysis chart a break out occurs when price of a stock or commodity exits an area pattern. Oftentimes, a stock or commodity will bounce between the areas of support and resistance and when it breaks through either one of these barriers you can consider the direction that it's heading in a trend. Often the resistance level the price breaks through becomes a new support level, and vice versa. This can be a "Buy" or "Sell" signal depending on which barrier it broke through.
References
 |  |
Licensed under CC BY-SA 3.0 | Source: https://handwiki.org/wiki/Finance:Breakout_(technical_analysis)2 views | ↧ Download this article as ZWI file
EncycloReader
is supported by the 
KSF