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.

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Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.