As Promised "Breakout Explanation"
A brief explanation of breakouts.
Breakout: It define as when the market is stuck in between two levels i-e Support and resistance levels. And then it break one side of that level and the price start growing or dropping, the exact place where the level break is known as Breakout.
Types of Breakout:
Two major types.
(1) Continuation Breakouts:
Continuation Breakouts only occurs in trends. And after these breakouts trend is going in their own direction.
Example: Picture one
(2) Consolidation Breakouts: It can occur in the middle of trend, in the high if a trend, in the low of a trend, and in Sideways markets as well.
It has sub types:
(i) Consolidation Continuation Breakout:
(ii) Consolidation Reversal Breakout:
Example: Picture two.
(3) False Breakout: Also called Fackout.
Mostly occurs before Consolidation Reversal Breakout. It is actually the fail condition of breakout.
Example: Picture three.
If you are interested in Learning, let me know in the comment section I'll explain one by one with examples.
If you have any questions or doubts Feel free to ask.
That's all for today.
See you...
