Glossary › breakout

Trading glossary · structure

breakout

When price pushes out of a box it was stuck in, going above a ceiling or below a floor.

The fuller meaning

A decisive close beyond support, resistance or a range edge. Traders look for a close rather than a wick, volume above average and follow-through. Breakouts start many big moves but many fail, so the invalidation level is set before entry; a downside break is often called a breakdown.

breakout.

Related words

above-average volume · bounce · break of structure · breakaway gap · breakdown · broken level · channel · choppy market · common gap · daily chart