A situation in which a security or index trades and closes above a resistance level or below a support level. A technician often interprets a breakout as a confirmation of a market trend and will typically expect the volume, volatility, and momentum triggered by the breakout to correlate with the importance of the resistance or support it penetrated.
Browse by Subjects
stop limit order
See All Related Terms »
original issue discount (OID)
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):