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Breakout pattern

Discussion in 'Technical Analysis' started by mailtoswarup, Sep 5, 2017.

  1. mailtoswarup

    mailtoswarup Member

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    How to spot a breakout ? What is the criteria for it? I am not asking this question for intraday chart but if i am looking at a 6 month chart. Because in some cases we can see the price is always going above last closure and it gets confusing

    I have recently started studying technical analysis.
     
    mailtoswarup, Sep 5, 2017
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  2. shabbir

    shabbir Administrator Staff Member

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    The best way to spot a breakout is to look at the price point when a stock isn't able to cross certain price points. That level is a strong supply zone or resistance levels and once stock break above those price points on a closing basis or trades 3 to 5% above those marks for a considerable amount of time, it is considered breakout levels.

    Pidilite.png

    The read line is the breakout levels and it tested that resistance levels several times before actually breaking out.
     
    shabbir, Sep 6, 2017
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  3. mailtoswarup

    mailtoswarup Member

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    Thank you Sir
     
    mailtoswarup, Sep 6, 2017
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  4. nirajshah

    nirajshah Champion

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    Thanks for such a detail explanation.

    Sent from my Micromax Q385 using DIY Technical Analysis mobile app
     
    nirajshah, Sep 6, 2017
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  5. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Sep 6, 2017
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  6. bnnarayana

    bnnarayana Contributor

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    bnnarayana, Sep 6, 2017
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