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currencysecrets/breakouts.md

Created August 9, 2013 12:43
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Breakout Principles. What are the underlying principles behind a breakout bar?
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breakouts.md

Setups

  1. Price range must exceed average price range.
  2. Price must break into an uncommon area.
  3. Price must open near one extreme and close near the other.
  4. Volume must exceed average volume.

Confirmations

  • Price continues to advance in the direction of the breakout.
  • Price must NOT return to the open of the breakout bar.
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