[breyk-out] 
| 1. | an escape, often with the use of force, as from a prison or mental institution. |
| 2. | an appearance or manifestation, as of a disease, that is sudden and often widespread; outbreak. |
| 3. | an itemization; breakdown: a hotel bill with a breakout of each service offered. |
| 4. | an instance of surpassing any previous achievement: a breakout in gold prices. |
| 5. | the act or process of removing and disassembling equipment that has been used in drilling a well. |
| 6. | of or constituting a sudden increase, advance, or unexpected success: The director has finally scored with a breakout movie. |
| break·out (brāk'out') n.
|
Breakout
A chart pattern used to indicate a rise in a stock's price above its resistance level (such as its previous high price) or a drop below its support level (commonly the last lowest price).
This chart image shows a stock breaking below its support level.
Investopedia Commentary
The assumption is that a stock will continue to move in the same direction following a breakout, generating a buy or sell signal.
Related Links
Backspreads: Good News For Breakout Traders
Profiting From The Squeeze
Advanced Channeling Patterns: Wolfe Waves and Gartleys
Introduction To Technical Analysis
See also: Breakout Trader, Chartist, Pattern, Resistance, Reversal, Support, Technical Analysis, Trend, Triangle
Also spelled: Break out
breakout
