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  1. Home
  2. /Glossary
  3. /Breakout
Back to Glossary
trading

Breakout

When price moves above a resistance level or below a support level with strong volume.

Definition

When price moves above a resistance level or below a support level with strong volume. A confirmed breakout often signals the start of a new trend. False breakouts (fakeouts) happen when price briefly breaks through but quickly reverses, trapping eager traders.

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Related Terms

Resistance

A price level where selling pressure tends to overcome buying pressure, causing price to stall or reverse.

Support

A price level where buying pressure tends to overcome selling pressure, preventing further decline.

Trading Volume

The total amount of an asset traded over a period, usually 24 hours.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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