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THREETREND RESEARCH

1st Sep · SEBI Registration INH000022729

How breakout works in technical charts, chart is attached

ENGINERSIN
A breakout occurs when price decisively moves above an important resistance level. It indicates that buying pressure has overcome selling pressure at that level. A strong breakout is usually supported by a large bullish candle and higher volume. The previous resistance can often become a new support zone after the breakout. A breakout followed by a pullback and successful retest gives stronger confirmation. If price sustains above the breakout level, the probability of further upward movement increases. A false breakout occurs when price moves above resistance but quickly falls back below it. Therefore, traders should look for price sustainability, volume, and retest confirmation before considering a breakout reliable.

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