Technical Analysis- Breakouts

Investors have the notion that a breakout signals a new trend that should continue. A breakout is the movement of a security's price beyond its past support or resistance level. After a security's price has repeatedly reached a support level, for example, investors willing to buy at the support price have already bought. So when the price breaks through this support level or point, there are fewer buyers than sellers which leads to a decline in prices.




A resistance breakout is exactly the inverse of a support breakout. After a security's price has repeatedly reached a resistance level, for example, investors willing to sell that the resistance level or point have already sold. So when the price breaks through this resistance level or point, there are more buyers than sellers which leads to a steady increase in prices.


Trend analysis
Support and Resistance Levels
Head and Shoulders Formation
Saucers
Breakouts
Consolidation