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A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance or enters a short position after the stock what is a registered investment advisor<\/a> breaks below support. Once the stock trades beyond the price barrier, volatility tends to increase and prices usually trend in the breakout’s direction. One way to identify potential breakout stocks is by looking for those with increasing volume and price momentum. Breakout stocks often have a sudden surge in trading volume, which may indicate growing investor interest.<\/p>\n<\/p>\n