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Category – Breakout

Breakout refers to the price movement of an asset breaking through a defined support or resistance level, signaling the potential for a new trend. In trading, breakouts are used as a strategy to identify opportunities when an asset makes a significant move in one direction, often with high volume. Traders use technical analysis to spot breakout patterns, such as triangles or channels, and enter positions early in the trend to capitalize on momentum before prices stabilize.