May 9th, 2008
Breakouts And Pivots In Stock Trading
How many times have you heard that a stock is “breaking out”? Seems like every time a stock moves higher it is “breaking out.” Breaking out of WHAT? Defining a “breakout” first calls for clarification of an equally important but less used and understood term - “pivot.”
Definition
Webster’s defines “pivot” as:
2. Axis consisting of a short shaft that supports something that turns.