Breakout
Breakout is a financial term used to describe a situation in which the price of a security or asset moves sharply and quickly in one direction. It is typically used to describe a situation in which the price of a security or asset moves sharply and quickly upwards, but it can also be used to describe a situation in which the price of a security or asset moves sharply and quickly downwards. In either case, the price of the security or asset is said to have “broken out” of its previous range.
History of the Term
The term “breakout” has been used in the financial markets since at least the early 1900s. It was first used to describe a situation in which the price of a security or asset moved sharply and quickly upwards, but it has since been used to describe a situation in which the price of a security or asset moves sharply and quickly in either direction. The term is often used to describe a situation in which the price of a security or asset moves sharply and quickly upwards, but it can also be used to describe a situation in which the price of a security or asset moves sharply and quickly downwards.
Comparison Table
| Type of Movement | Price Change |
|---|---|
| Upwards | Sharp and Quick |
| Downwards | Sharp and Quick |
Summary
Breakout is a financial term used to describe a situation in which the price of a security or asset moves sharply and quickly in one direction. It is typically used to describe a situation in which the price of a security or asset moves sharply and quickly upwards, but it can also be used to describe a situation in which the price of a security or asset moves sharply and quickly downwards. For more information about this term, readers can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Support and Resistance
- Trendlines
- Moving Averages
- Price Channels
- Price Action
- Volume
- Volatility
- Gap
- Reversal
- Breakdown
