Core Concepts
Breakout
Price moving decisively beyond a key level
A breakout occurs when price moves beyond a significant support or resistance level with conviction, often signaling the start of a new trend or continuation of an existing one. True breakouts are confirmed by volume.
✓How to Recognize
- •Price closes beyond key level (not just wicks)
- •Increased volume on the breakout candle
- •Follow-through in subsequent candles
- •Previous level acts as new support/resistance
⚡How to Avoid
- →Wait for candle close, not just price touch
- →Require volume confirmation
- →Watch for retest of broken level
- →Be aware of false breakouts (fakeouts)