- A type of recommendation to buy an asset once the price is able to surpass an influential level of resistance. A move above resistance is used as a buy signal because an increase in upward momentum often follows the breakout. Buying a break is a strategy often used by traders who incorporate the use of chart patterns, trendlines and other technical indicators into their trading.
For example, suppose a stock appears to have met resistance at the $50 price level for the last year. Many traders will watch the price movement around $50 very closely because a break above the resistance would suggest that a likely surge higher will follow. Technical traders use a break above resistance to signal a good opportunity to buy because a resulting surge of upward momentum commonly follows.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Buy More — (Burbank) Industry Retail Founder(s) Moses Finkelstein Headquarters Burbank, CA … Wikipedia
break the bank — In gambling, to win from the management the sum fixed as the limit it is willing to lose on any one day • • • Main Entry: ↑bank * * * break the bank phrase to win more at gambling than the casino can pay you Thesaurus: to gamble moneysynonym … Useful english dictionary
buy the farm — verb pass from physical life and lose all bodily attributes and functions necessary to sustain life She died from cancer The children perished in the fire The patient went peacefully The old guy kicked the bucket at the age of 102 • Syn: ↑die,… … Useful english dictionary
Buy to let — The phrase buy to let can refer either to the investment strategy of buying a residential property to be let for profit; or to a particular category of mortgage used to purchase a property for letting. For many years landlords have invested in… … Wikipedia
Break (music) — For other uses, see Break (disambiguation). Breakdown (music) redirects here. For other uses, see Breakdown (disambiguation). In popular music, a break is an instrumental or percussion section or interlude during a song derived from or related to … Wikipedia
break — 1 /breIk/ verb past tense broke, past participle broken 1 IN PIECES a) (T) to make something separate into two or more pieces, for example by hitting it, dropping it, or bending it: The thieves got in by breaking a window. | break sth in two/in… … Longman dictionary of contemporary English
Buy It in Bottles — Infobox Single Name = Buy It in Bottles Caption = 7 and CD cover Artist = Richard Ashcroft from Album = Human Conditions B side = Don t Take Me In , The Journey’s Just Begun Released = April 7 2003 Format = 7 , CD, DVD Recorded = Genre =… … Wikipedia
break down — verb 1. make ineffective (Freq. 3) Martin Luther King tried to break down racial discrimination • Syn: ↑crush • Derivationally related forms: ↑breakdown • Hypernyms: ↑change, ↑ … Useful english dictionary
Break the Night with Colour — Infobox Single Name = Break the Night with Colour Caption = 7 and CD cover Artist = Richard Ashcroft from Album = Keys to the World B side = The Direction , Slip Sliding Released = 9 January 2006 Format = 7 , CD, DVD Recorded = 2005 Genre =… … Wikipedia
Buy term and invest the difference — Buying term and investing the difference is a concept involving term life insurance and investment strategies that allow individuals to eventually Self Insure and provides an alternative to permanent life insurance. Generally speaking term… … Wikipedia