Technical Analysis

Breakout

A price move beyond a defined support, resistance or chart range.

Plain-English context

Put the definition to work.

ILLUSTRATIVE EXAMPLE

A chart crossing a prior $50 resistance area is an observed price event. Follow-through, volume and failure evidence are still needed.

IMPORTANT DISTINCTION

Define the level before observing the outcome; selecting only successful breakouts introduces hindsight and survivorship bias.

Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. FINRA — investing insights

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