Few characteristics of a successful breakout-

  • It sequels from some kind of consolidation pattern. It could be a channel/Triangle/flag/Pennant or something else.
  • Increased volatility in price post breakout
  • Increased momentum. Which means- More number of high days than number of low days. [High days = close>open , Low days = close<open]
  • Some books/traders say increase in volume is seen as prices leave the consolidation zone, although I haven’t tested that.

x-breakout-continued

Chart from 2/12

$X CHANNEL BREAKOUT PATTERN

$X CHANNEL BREAKOUT PATTERN