Breakout (technical analysis)

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A breakout is when prices pass through and stay through an area of support or resistance. On the technical analysis chart a break out occurs when price of a stock or commodity exits an area pattern. Oftentimes, a stock or commodity will bounce between the areas of support and resistance and when it breaks through either one of these barriers you can consider the direction that it's heading in a trend. Often the resistance level the price breaks through becomes a new support level, and vice versa. This can be a "Buy" or "Sell" signal depending on which barrier it broke through. in most cases, after price passed its trend, support or resistance line, continue to move a bit, then back and touch it's previous line and again move in its direction that passed through its line, in technical analysis term that touch called goodbye kiss and this phenomena called pull back.^[1]

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Breakout with volume

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