- Breakout is the phenomenon where the prices move upwards out of a range breaking an important resistance level in the process. Normally a breakout is to be supported by high volumes and it indicates a further up move in that stock.
- Breakdown is the phenomenon where the prices move downwards breaking an important support level in the process. Normally a breakdown is to be supported by high volumes and it indicates a further down move in that stock.
- Pullback is the tendency of the share prices to come back towards the Trend line after a breakout or a breakdown and is a precursor to a big / dynamic move that is to follow.
- Support becomes Resistance and Resistance becomes Support on a breakout / breakdown of a Trend line.
- A Breakout or a Breakdown has to be supported by high volumes and the absence of it may lead to loss of momentum and failure of the pattern.
