Buy Break

A strategy a breakout trader would use. He would find a stock that is basing, in other words bouncing around in a range with a rough upper boundary(resistance) and lower boundary(support). He would buy the stock once the stock price breaks above the upper boundary(resistance) assuming that the stock may be able to rise much higher.

See “breakout trader” for more, there are risks and potential pitfalls associated with this approach.

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