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Breakout
Chart PatternsWhen price moves above a resistance level or below a support level with increased volume. A valid breakout requires volume confirmation and often leads to a sustained directional move.
Related Terms
Resistance
A price level where selling pressure tends to overcome buying pressure, causing the price to stall or reverse downward.
Support
A price level where buying pressure tends to overcome selling pressure, causing the price to stall or bounce upward.
Volume
The number of shares or contracts traded in a security during a given period.
False Breakout
When price briefly moves beyond a support or resistance level but quickly reverses back.