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Breakout

A move through a support or resistance level that had held before.

Technical AnalysisBeginner

Definition

A breakout above resistance suggests buyers are now willing to pay more than sellers wanted before. The move is more credible when it comes with above-average volume. Many breakouts fail and fall back inside the range.

Watch out for

A false breakout on low volume is common. Many traders wait for a close beyond the level, or a retest, before treating it as real.

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