Bullish Breakaway
A bullish breakaway is a technical analysis term used to describe a situation in which a stock or other security breaks out of a trading range or other chart pattern to the upside. This type of breakout is seen as a sign of strength in the security and is often used by traders and investors to identify potential buying opportunities. The bullish breakaway is the opposite of a bearish breakaway, which is a breakout to the downside.
History of the Term
The term “bullish breakaway” was first used in the late 19th century by Charles Dow, the founder of Dow Theory. Dow Theory is a set of principles that are used to analyze the stock market and identify potential trading opportunities. According to Dow Theory, a bullish breakaway is a sign of strength in the market and is often used to identify potential buying opportunities. The term has since been adopted by technical analysts and is used to describe a situation in which a security breaks out of a trading range or other chart pattern to the upside.
Comparison Table
| Term | Definition |
|---|---|
| Bullish Breakaway | A breakout to the upside from a trading range or other chart pattern. |
| Bearish Breakaway | A breakout to the downside from a trading range or other chart pattern. |
Summary
A bullish breakaway is a technical analysis term used to describe a situation in which a stock or other security breaks out of a trading range or other chart pattern to the upside. This type of breakout is seen as a sign of strength in the security and is often used by traders and investors to identify potential buying opportunities. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bearish Breakaway
- Breakout
- Support and Resistance
- Trendlines
- Moving Averages
- Relative Strength Index (RSI)
- Bollinger Bands
- MACD
- Stochastic Oscillator
- Volume
