Breakdown

A price movement through an identified level of support, which is usually followed by heavy volume and sharp declines. Technical traders will short sell the underlying asset when the price of the security breaks below a support level because it is a clear indication that the bears are in control and that additional selling pressure is likely to follow.

Breakdown

Technical tools such as moving averages, trendlines and chart patterns are the most common methods for technical traders to identify strong areas of support. The chart above shows that a trader will enter into a short position when the price breaks below an area of support (the thick dark line), which has been identified by using a head and shoulders chart pattern.

A breakdown is the bearish counterpart of a breakout.


Investment dictionary. . 2012.

Synonyms:

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  • Breakdown — may refer to: *Electrical breakdown *Breakdown (Transformers) *Chemical breakdown *Decomposition *Mental breakdown *Breakdown, a statement explaining the details of something such as a bill or cost of a plan. *A script breakdown for a play, film …   Wikipedia

  • Breakdown — Saltar a navegación, búsqueda «Breakdown» Sencillo de Mariah Carey con Bone Thugs n Harmony del álbum Butterfly Publicación 24 de marzo de 1998 Formato …   Wikipedia Español

  • breakdown — break‧down [ˈbreɪkdaʊn] noun 1. [countable] a statement showing information or a total amount separated into parts so that it is easier to understand: • A spending breakdown showed the average household spent £47.70 on food per week. • Also in… …   Financial and business terms

  • Breakdown — ist Breakdown (Film) ein Film mit Kurt Russell, der 1997 gedreht wurde Breakdown (Musik) ein Gitarren Riff, welcher hauptsächlich aus langsamen, intensiven 4/4 Downstrokes besteht. Breakdown (Zeichentrick) die Zerlegung einer Szene beim… …   Deutsch Wikipedia

  • breakdown — can mean, in addition to its meaning in relation to machines, human health, and aspects of human behaviour, ‘an analysis of statistics or information’: • The breakdown of expenses…is relatively detailed in some cases but not in others J.… …   Modern English usage

  • Breakdown — Break down , n. 1. The act or result of breaking down, as of a carriage; downfall. [1913 Webster] 2. (a) A noisy, rapid, shuffling dance engaged in competitively by a number of persons or pairs in succession, as among the colored people of the… …   The Collaborative International Dictionary of English

  • breakdown — [bʀɛkdawn] n. m. ÉTYM. 1949; mot angl. « effondrement » dans nervous breakdown, de to break down « tomber en se brisant ». ❖ ♦ Anglic. Dépression nerveuse …   Encyclopédie Universelle

  • breakdown — (n.) a collapse, 1832, from BREAK (Cf. break) + DOWN (Cf. down). The verbal phrase is attested from late 14c. The noun, specifically of machinery, is from 1838; meaning an analysis in detail is from 1936. Nervous breakdown is from 1905 …   Etymology dictionary

  • breakdown — [n1] nervous collapse basket case*, crackup*, disintegration, disruption, failure, mishap, nervous prostration, neurasthenia, neurosis, psychasthenia; concept 410 Ant. mental health breakdown [n2] account of finances or other business analysis,… …   New thesaurus

  • breakdown — [brāk′doun΄] n. 1. an act, instance, or result of breaking down; specif., a) a failure to work or function properly [breakdown of a machine, of authority, etc.] b) a failure of health; physical, mental, or emotional collapse c) decomposition d) a …   English World dictionary

  • Breakdown — Breakdown. См. Обжатие. (Источник: «Металлы и сплавы. Справочник.» Под редакцией Ю.П. Солнцева; НПО Профессионал , НПО Мир и семья ; Санкт Петербург, 2003 г.) …   Словарь металлургических терминов

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