Breakout
Price has been pacing the cage for days. Then the door gives.
In plain English
When price bursts through a resistance level or out of a pattern, often with a surge of momentum.
A breakout is the moment a price escapes. It has been pinned under resistance or squeezed inside a range, then it bursts through. Orders waiting above the level are triggered, short sellers rush to cover, and the move can accelerate.
Many breakouts fail and fall back inside, a fakeout. Traders filter them by waiting for a candle to close beyond the level, looking for rising volume (where it is visible), or waiting for a retest of the broken level.
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