breakout
A breakout occurs when the price of a stock breaks through its resistance level.
The resistance level is usually a price ceiling at which the stock has previously encountered selling. In many cases, but not always, that resistance level is the highest point in a "handle" portion of a base pattern.
Stock chart illustrating a breakout above a resistance level.
Breakouts are easily spotted onPoint & Figure charts as illustrated below.
Point and Figure chart illustrating a stock price breakout.
Interpretation of Breakout
Technical traders will buy the security when a price breakout occurs as it is likely that additional buying pressure will follow.
More Information
candlestickforum.com: Finding Stock Price Breakouts Using Candlestick Signals
