Breakouts vs Breakdowns

The Breakouts Screen contains two primary tabs:

• Breakouts
• Breakdowns

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Breakouts

The Breakouts tab displays instruments that have moved above a recent resistance level.

A breakout occurs when price exceeds a level where sellers previously prevented further upward movement.

Typical Characteristics

• Price closes above resistance
• Increased momentum
• Potential start of an uptrend
• Potential continuation of an existing trend

Example

Suppose EUR/NZD has repeatedly failed to move above 1.9800.

If price breaks above 1.9800 and continues higher, the pair will appear in the Breakouts tab.

Traders may interpret this as:

• Buyers gaining control
• Resistance becoming new support
• Opportunity to participate in bullish momentum

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Breakdowns

The Breakdowns tab displays instruments that have moved below a recent support level.

A breakdown occurs when price falls beneath a level where buyers previously defended the market.

Typical Characteristics

• Price closes below support
• Increased selling pressure
• Potential start of a downtrend
• Potential continuation of an existing bearish trend

Example

Suppose AUD/USD has held support at 0.7100 multiple times.

If price falls below 0.7100 and continues lower, the pair will appear in the Breakdowns tab.

Traders may interpret this as:

• Sellers gaining control
• Support becoming new resistance
• Opportunity to participate in bearish momentum

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Key Takeaway

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