Technical analysis
Breakout
Also known as: breakout trading
A breakout is price moving decisively beyond a defined level, a range, trendline or chart pattern, often signalling the start of a new move.
Traders enter in the breakout direction expecting continuation, using volume or a close beyond the level as confirmation. The main risk is a false breakout (a fakeout) that reverses, which a liquidity sweep can disguise.
Related terms
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