Charts & technicals
What is Breakout?
Also called: Breakdown
Hinglish mein padhein: Breakout kya hota hai?
A breakout is when price moves above resistance (or below support, a breakdown), often starting a bigger move.
Breakouts on strong volume are more reliable. Many breakouts fail and fall back into the range — a "false breakout".
Common breakout levels are the previous week's, month's or 52-week high.
Related terms
- Support and resistanceSupport is a price level where buying has repeatedly stopped a fall; resistance is where selling has repeatedly capped a rise.
- VolumeVolume is the number of shares traded in a period. It shows how much participation is behind a price move.
- 52-week high and lowThe 52-week high and low are the highest and lowest prices a stock has traded at over the past year.