What are breakout stocks?

Breakout stocks are shares that move beyond their support or resistance level. A key concept in technical analysis, breakouts can indicate that a stock is about to make a significant move. If a stock moves beyond its resistance level, it will often go on to make a sustained upward move.

What does a breakout trader look for?

A breakout trader looks for price, a technical indicator, or a data point to move beyond a support or resistance level. A breakout trader can use price, a technical indicator, or fundamentals to prompt them into a breakout trade.

What does a breakout mean in technical analysis?

A key concept in technical analysis, breakouts can indicate that a stock is about to make asignificant move. If a stock moves beyond its resistance level, it will often go on to make a sustained upward move. If it moves past its support level, it may be about to go on a bear run.

What is a breakout pattern & how does it work?

Another pattern that is used to trade breakouts. As the name suggests, the pattern resembles a typical cup that has a handle. In most cases, it forms when an asset in an uptrend finds a strong resistance and then moves in a slow downward trend. It then finds a support and starts to rise slowly.