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)