A breakout occurs when price moves decisively beyond a support or resistance level or a chart pattern, often signalling the start of a new move. Traders try to enter as momentum builds, but must watch for false breakouts that quickly reverse into a whipsaw.
Forex Term
Breakout
When price pushes beyond a key support or resistance level.
Example
A pair breaking above 1.1200 after weeks of resistance is a breakout.
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Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.