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 A chart pattern used to indicate a rise in a stock's price above its resistance level (such as its previous high price) or a drop below its support level (commonly the last lowest price).  The image above shows a stock breaking below its support level. |
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 The assumption is that the stock will continue to move in the same direction following the breakout, generating a buy or sell signal. |
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 Support and Resistance Zones - Part 2 - In this the second part of the study of Support and Resistance Zones, let's look closer at overhead supply and draw some of the human emotion of investing into the equation. Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more. Profiting From The Squeeze - Learn how Bollinger's "squeeze" can help you determine breakout direction. Advanced Channeling Patterns: Wolfe Waves and Gartleys - Discover how these provide the trader with insight into both the timing and scope of breakouts. |
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