// TRADING TERMINOLOGY
What is Breakout?
When the price of an asset moves above a resistance level or below a support level with increased volume.
In-Depth Explanation
Breakouts often signal the start of a new trend. Many traders wait for a "retest" of the breakout level before entering to ensure it isn't a "fakeout."
Practical Example
"Gold breaks out of a 6-month consolidation pattern, leading to a massive rally."
Related Terms
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