Article content

Breakout

The breakout chart pattern is my least favorite pattern because you are always chasing. Nevertheless, a breakout above resistance can be very profitable even if you are a little late to the Bull party. Breakout chart patterns are more accurate in a trending market (i.e. buy high and sell even higher). In the chart above, notice that often chart patterns will go through three stages: oversold, continuation pattern, and breakout.

breakout-pattern

<< Back to Glossary Index

Picture of SOFI artificial intelligence

SOFI AI For Premium Members