Price-Volume Breakout – The Most Reliable Entry Signal

A breakout is not just about price crossing resistance. The real strength of a breakout is measured by volume — because it shows commitment from buyers. 🔹 Price + Volume Breakout = Strong Institutional Activity A breakout with low volume = Possible trap A breakout with high volume = Strong move likely to sustain ✅ What to Look For: Breakout from multi-week consolidation Volume should be 2x–3x the 10-day average Follow-up candle with closing above resistance zone confirms strength 📌 Example: Stock ABC was consolidating between ₹180–195 for 4 weeks. It breaks ₹196 with 3x volume and closes at ₹200 → This is a valid breakout. Entry: ₹200 | SL: ₹192 | Target: ₹220+ 🧠 Tip: Avoid entering on intraday spikes. Wait for a closing basis breakout with volume + structure confirmation.