Breakout

A breakout is a move above a price level the stock has failed to pass before, usually the top of a range it has traded in for weeks. Breakout traders buy as it clears that level, often only on above-average volume, with a stop below the range.

Many breakouts fail and fall back into the range, so breakout strategies tend to have low win rates and rely on a few large winners. Market conditions matter: breakouts work better when most stocks are rising.