Breakout Trading

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Breakout Trading.

A stock price moving outside a defined support or resistance level with increased volume.  A breakout trader monitors securities that have been resistant to moving above defined price level and waits for it to move beyond its previous resistance point.  Then the trader enters a trade in the breakout direction, making the assumption that the price will continue to move rapidly.