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Trading & Technical Analysis

Breakout

Also called: breakout trading, false breakout, fakeout

A breakout is price moving decisively beyond a defined level of support or resistance, taken as the start of a new move. The recurring problem is the false breakout: price pushes just past the level, triggers the stops clustered there, and reverses. That pattern is common enough to have become a strategy in itself, traded deliberately against breakout buyers.

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