Buy Break


DEFINITION of 'Buy Break'

A type of recommendation to buy an asset once the price is able to surpass an influential level of resistance. A move above resistance is used as a buy signal because an increase in upward momentum often follows the breakout. Buying a break is a strategy often used by traders who incorporate the use of chart patterns, trendlines and other technical indicators into their trading.


For example, suppose a stock appears to have met resistance at the $50 price level for the last year. Many traders will watch the price movement around $50 very closely because a break above the resistance would suggest that a likely surge higher will follow. Technical traders use a break above resistance to signal a good opportunity to buy because a resulting surge of upward momentum commonly follows.

  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Trend Analysis

    An aspect of technical analysis that tries to predict the future ...
  3. Buy Minus

    A type of order where a client instructs a broker to purchase ...
  4. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  5. Breakout

    A price movement through an identified level of support or resistance, ...
  6. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
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