Results for breakout
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Dictionary:

breakout

  (brāk'out') pronunciation
n.
  1. A forceful emergence from a restrictive condition or situation.
  2. A sudden manifestation or increase, as of a disease; an outbreak.
  3. A breakdown of statistical data.

 
 

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.


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.

Investopedia Says:
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.

Related Links:
Learn how to capitalize on the predictable behavior of others during breakouts and breakdowns. Trading Failed Breaks
Find out how to make sense of this tricky - but profitable - formation. Tales From The Trenches: Volume Confirmed Broadening Pattern
This bullish trading strategy offers unlimited potential profit with limited risk. Backspreads: Good News For Breakout Traders
Learn how Bollinger's "squeeze" can help you determine breakout direction. Profiting From The Squeeze
Discover how these provide the trader with insight into both the timing and scope of breakouts. Advanced Channeling Patterns: Wolfe Waves and Gartleys
This straightforward histogram can help you analyze the buying and selling interest in a stock. Gauging Support And Resistance With Price By Volume
Discover how these influential levels can switch roles. Support And Resistance Reversals
ChartAdvisor experts illustrate why it's important to stick to your strategy. Tales From The Trenches: Don't Count On Luck
Follow along with one of ChartAdvisor's failed trades and learn from our mistakes. Tales From The Trenches: Hindsight Is 20/20
Learn how to set each type of stop and limit when trading currencies. Place Forex Orders Properly
Savvy investing is all about learning some smart rules and sticking to them. We give you the rundown. Sell Growth Stocks The IBD Way


 

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.

 
Thesaurus: breakout

noun

    The act or an instance of escaping, as from confinement or difficulty: break, decampment, escape, escapement, flight, getaway. Slang lam. See free/unfree.

 
Word Tutor: breakout
pronunciation

IN BRIEF: n. - An escape from jail.

Tutor's tip: A "breakout" is an action that frees one, such as a prison breakout, while to "break out" is to produce or emerge suddenly.

 
Translations: Translations for: Breakout

Dansk (Danish)
n. - udbrud, flugt
adj. - udbruds-, flugt-

Nederlands (Dutch)
uitbraak

Français (French)
n. - évasion
adj. - évadé

Deutsch (German)
n. - Ausbruch
adj. - erfolgreich und populär

Ελληνική (Greek)
n. - απόδραση

Italiano (Italian)
evasione

Português (Portuguese)
n. - fuga (f)

Русский (Russian)
побег

Español (Spanish)
n. - evasión, fuga
adj. - evasión, fuga

Svenska (Swedish)
n. - utbrytning, flykt, genombrott

中文(简体) (Chinese (Simplified))
脱逃, 突围, 越狱, 越狱的

中文(繁體) (Chinese (Traditional))
n. - 脫逃, 突圍, 越獄
adj. - 越獄的

한국어 (Korean)
n. - 포위 돌파
adj. - 돌파하는

日本語 (Japanese)
n. - 包囲突破, 脱走

العربيه (Arabic)
‏(الاسم) هروب من السجن‏

עברית (Hebrew)
n. - ‮בריחה, פריצה החוצה‬
adj. - ‮של בריחה‬


 
 

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Copyrights:

Dictionary. The American Heritage® Dictionary of the English Language, Fourth Edition Copyright © 2007, 2000 by Houghton Mifflin Company. Updated in 2007. Published by Houghton Mifflin Company. All rights reserved.  Read more
Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Thesaurus. Roget's II: The New Thesaurus, Third Edition by the Editors of the American Heritage® Dictionary Copyright © 1995 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved.  Read more
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