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Breakoutsignal

💥 3 Types of BreakoutIn trading, the term "breakout" refers to a price movement that "breaks" past a certain level or range. It's important to note that breakouts can be false, meaning the price could reverse its movement after the breakout. Hence, traders often use confirmation techniques to confirm the validity of a breakout. A breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout strategy, know when to cut your losses and re-assess the situation if the breakout sputters. As with any technical trading strategy, don't let emotions get the better of you. Stick with your plan and know when to get in and get out. 📈3 Key things to know about Breakouts📉 📍A breakout in the stock market refers to a situation where the price of a security moves beyond a pre-defined support or resistance level, accompanied by an increase in trading volume. Traders often take advantage of breakouts by entering a long position when the price surpasses resistance or a short position when it falls below support. This movement beyond a price barrier often leads to increased volatility and a trend in the direction of the breakout. 📍Breakouts are highly valued as a trading strategy because they can signal the beginning of heightened volatility, substantial price movements, and major trends. This phenomenon can occur in various market conditions and is particularly noticeable in the case of channel breakouts and price pattern breakouts, such as triangles, flags, or head and shoulders patterns. As volatility contracts during these periods, it typically expands once the prices move beyond the established range. 📍Breakout trading can be applied to various trading styles and timeframes, including intraday, daily, or weekly charts, making it a versatile strategy for day trading, swing trading, or any other approach. 🔹 Trend Line Breakout: This occurs when the price breaks past a trend line that has been connecting a series of lows or highs. 🔹 Support and Resistance Breakout: This occurs when the price breaks past a significant level of support or resistance. 🔹 Flag and Pennant Breakout: This occurs when the price breaks past a flag or pennant pattern, which is a short-term consolidation pattern. 🔹 Rectangle Breakout: This occurs when the price breaks past a rectangular price pattern, which is a pattern of price congestion. 🔹 Volume Breakout: This occurs when the volume of trades surpasses a significant level, indicating a potential change in trend. It's important to note that breakouts can be false, meaning the price could reverse its movement after the breakout. Hence, traders often use confirmation techniques to confirm the validity of a breakout. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
20
TH | Bullish Bat Harmonic | Breakout Signal Entry Position TH | Thailand SET Index | Financial Sector | Price Action & Chart Pattern Trading Chart Pattern: Falling Channel - Bullish Bat Harmonic Pattern Price Action: Breakout Entry Position Indicator: > RSI Bullish signal crossing up MA line above 50. > MACD Bullish - golden cross signal just below the baseline. Trade with affordable risk ratio 3:1 Trust in your system indicator Never panic trade Always respect stop-loss Goodluck DP
SET:THLong
by dukeposh
2
Where is Crypto heading?Spread graphs assist precision in determining key resistance & support levels. Current economic conditions aren't promising for such volatile/unregulated assets. It is critical to point out the heavy sells over the last year matched the timing of the Russo-Ukrainian war, the rise in the cost of living, the natural end of the bull cycle* and etc. At times of stable quietness (placidity), we should expect financial assets to return towards their equilibrium valuations. The 2 blue downward-sloping channels have the same gradient and similar attributes. For both the anticipated bull run began after breaking out of the middle (grey, semi-lines) line. Moreover, due to the magnitude of last year's sales, the current strength of the breakout is instinctive. The top pane represents the correlation coefficient between cryptocurrencies and safe heavens. Their natural negative correlation implies that at peaks of the indicator large momentum in one direction is expected. RSI (pane below) may assist to speculate which direction the short-term/long-term trend is going. The arrow path is based on BTC's historic breakout from 2019 (1st downward-sloping blue channel) Thanks again
CRYPTOCAP:BTCLong
by Sanzhar_m
7
AGARIND - Bullish Consolidation Breakout with VolumesNSE: AGARIND is closing with a bullish consolidation breakout candle supported with volumes. Today's volumes and candlestick formation indicates strong demand and stock should move to previous swing highs in the coming days. The stock has been consolidating for the past few days which is indicating demand. One can look for a 8% to 13% gain on deployed capital in this swing trade. The view is to be discarded in the event of the stock breaking previous swing low. #NSEindia #Trading #StockMarketindia #Tradingview #SwingTrade Disclaimer: This is for educational purposes only.
NSE:AGARINDLong
by BrahmaBull31
❌ False Breakout PatternsA breakout that failed to proceed past a level, leading to a "false" breakout of that level, is referred to as a "false breakout." One of the most essential price action trading patterns to learn is the false double bottom and double top patterns, as a false-break is frequently a very strong indicator that price may be changing direction or that a trend may soon resume. False breakouts occur in all market scenarios, including trending, consolidating, and counter-trending. Trading Tips To Respect: ✅False breakouts can happen in markets that are trending, range-bound, or going against the trend. Watch for them in all market conditions since they frequently provide insightful hints about the direction the market will take. ✅Trading against a trend can be challenging, but one of the "best" approaches is to watch for a clear false breakout signal from a significant support or resistance level, as in the last example above. ✅False breakouts provide us with a "window" into the "fight" between expert and amateur traders, allowing us to engage in trading alongside them. Trading will appear to you in a different light if you can learn to recognize and trade false breakout patterns. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
2