Breakout

A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility. Traders will buy the underlying asset when the price breaks above a level of resistance and sell when it breaks below support.

Breakout

This chart shows a stock that has historically encountered a lot of resistance near $37, but notice how it heads sharply higher following the breakout.

In practice, a breakout is most commonly used to refer to a situation where the price breaks above a level of resistance and heads higher, rather than breaking below a level of support and heading lower. Once a resistance level is broken, it is regarded as the next level of support when the asset experiences a pullback Most traders use chart patterns and other technical tools such as trendlines to identify possible candidates that are likely to break through a support/resistance level.

A breakout is the bullish counterpart to a breakdown.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Breakout — may refer to:In film, television and gaming: * Breakout is an influential 1976 arcade game by Atari. * Breakout characters are those which start as a supporting role but eventually become the main character through audience popularity. * Breakout …   Wikipedia

  • BreakOut — (jeu vidéo) Pour les articles homonymes, voir Breakout. Breakout Éditeur Atari Inc. Développeur Atari Inc. Concepteur Nolan Bushnell …   Wikipédia en Français

  • Breakout — Saltar a navegación, búsqueda El termino Breakout puede referirse a: Breakout, canción del cantante Sean Paul. Breakout, canción de la banda Foo Fighters. Breakout, álbum de estudio de la cantante Miley Cyrus. Breakout, videojuego de Atari.… …   Wikipedia Español

  • Breakout — (с англ. «Прорыв») может означать: Breakout  музыкальный альбом Майли Сайрус, выпущенный в 2008 году Breakout  польская музыкальная группа, игравшая в стиле блюз рок Breakout  аркадная игра 1976 года Breakout  песня и сингл… …   Википедия

  • Breakout — steht für: Breakout (Film), einen Schweizer Film aus dem Jahre 2007 Breakout (Computerspiel), ein Arcade Spiel aus dem Jahre 1976 den Originaltitel des Films Der Mann ohne Nerven von 1975 Siehe auch: BreakOut Magazin …   Deutsch Wikipedia

  • Breakout —   [dt. »ausbrechen«], eines der ersten Computerspiele für Home Computer. Spielidee ist es, einen bewegten »Ball« mit einem beweglichen Schläger gegen eine Mauer zu lenken; dabei brechen die vom Ball getroffenen Ziegel aus der Mauer heraus, bis… …   Universal-Lexikon

  • breakout — (n.) 1820, from BREAK (Cf. break) (v.) + OUT (Cf. out) (adv.). The verbal phrase goes back to O.E. ut brecan, utabrecan. Transitive sense is attested from 1610s …   Etymology dictionary

  • breakout — [brāk′out΄] n. a sudden, forceful escape, as from prison or enemy troop encirclement adj. achieving, resulting in, or characterized by sudden or unexpected success or popularity …   English World dictionary

  • Breakout — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Cinéma et télévision Breakout est un film britannique réalisé par Peter Graham Scott en 1959. Breakout est le titre original du téléfilm américain Cavale… …   Wikipédia en Français

  • Breakout — A rise in a security s price above a resistance level (commonly its previous high price) or drop below a level of support (commonly the former lowest price.) A breakout is taken to signify a continuing move in the same direction. Can be used by… …   Financial and business terms

  • breakout — A rise in a security s price above a resistance level (commonly its previous high price) or a drop below a level of support (commonly the former low price.) A breakout is taken to signify a continuing move in the same direction. Can be used by… …   Financial and business terms

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