4. Breakout

Break Out is simply a move beyound support and resistance.

  • Bear Break Out

  • Bull Break Out

Break Out is break blow/above the line.

Break Out is happending quite often.

  • In the picture, bearish bar is always trying to break out the previous bar's low. But failed. So the bull trend continues.

  • Until the large bearish bar breaks out multiple previous bars' low.

Every Bear Trend Bar is a Break Out, every Bull Trend Bar is a Break Out.

Break out success: then it will become trend.

Break out fail: then it will resume trading range.

In here it is a FAILED bear break out, but a SUCCESS bull break out.

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