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Analysis

Breakout — definition & meaning

When price moves decisively beyond a support or resistance level.

A breakout occurs when price pushes through a well-watched level of support or resistance, often signalling the start of a new move.

Breakouts can be powerful but also fail — a 'false breakout' or 'fakeout' reverses quickly, trapping traders who chased it. Confirmation, such as strong volume, is often used to judge whether a breakout is genuine.

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