Breakout

A breakout is the clear move of an asset’s price beyond a resistance or support level identified through technical analysis. It indicates a possible change in price dynamics.

A breakout is considered more significant when accompanied by increases in volume and volatility. In the absence of confirmation, however, it may turn out to be a false signal, or fakeout: depending on the direction, it is then referred to as a Bull Trap or a Bear Trap.

A breakout is a descriptive concept of technical analysis and does not guarantee future price movements.

Disclaimer: This entry is for information purposes only and does not constitute investment advice or a recommendation.