Bullish Breakout
A bullish breakout is a technical analysis term used to describe a situation in which the price of a security or asset breaks out of a defined resistance level. This is usually seen as a sign of a strong upward trend in the asset’s price. A bullish breakout is typically seen as a sign of a strong buying opportunity, as the asset is likely to continue to rise in price.
History of Bullish Breakouts
The concept of a bullish breakout has been around since the early days of technical analysis. It was first introduced by Charles Dow, the founder of Dow Theory, in the late 19th century. Dow Theory states that the price of a security or asset will move in a series of three movements: an uptrend, a downtrend, and a sideways trend. A bullish breakout occurs when the price of the asset breaks out of the sideways trend and begins to move upwards.
Comparison Table
| Term | Definition |
|---|---|
| Bullish Breakout | A technical analysis term used to describe a situation in which the price of a security or asset breaks out of a defined resistance level. |
| Uptrend | A situation in which the price of a security or asset is moving upwards. |
| Downtrend | A situation in which the price of a security or asset is moving downwards. |
| Sideways Trend | A situation in which the price of a security or asset is moving sideways. |
Summary
A bullish breakout is a technical analysis term used to describe a situation in which the price of a security or asset breaks out of a defined resistance level. This is usually seen as a sign of a strong upward trend in the asset’s price. A bullish breakout is typically seen as a sign of a strong buying opportunity, as the asset is likely to continue to rise in price. For more information about this term, you can visit Investopedia, The Balance, and Investing.com.
See Also
- Bearish Breakout
- Support Level
- Resistance Level
- Trend Line
- Moving Average
- Relative Strength Index (RSI)
- Bollinger Bands
- MACD
- Stochastic Oscillator
- Candlestick Chart
