✤ Green to green breackout

1. 1^st candle’s close must be greater than 1^st candle’s open, it means 1^st candle is a bullish candle.

2. 2^nd candle's close must be greater than 2^nd candle's open, it means 2^nd candle is a bullish candle.

3. 2^nd candle’s high must be greater than 1^st candle’s high, it means 2^nd candle has a higher high.

4. 2^nd candle’s low must be greater than 1^st candle’s low, it means 2^nd candle has a higher low.

5. 2^nd candle’s close must be greater than 1^st candle’s high, it means 2^nd candle is a breakout candle.

✤ Red to green breackout

1. 1^st candle’s close must be less than 1^st candle’s open, it means 1^st candle is a bearish candle.

2. 2^nd candle's close must be greater than 2^nd candle's open, it means 2^nd candle is a bullish candle.

3. 2^nd candle’s high must be greater than 1^st candle’s high, it means 2^nd candle has a higher high.

4. 2^nd candle’s low must be greater than 1^st candle’s low, it means 2^nd candle has a higher low.

5. 2^nd candle’s close must be greater than 1^st candle’s high, it means 2^nd candle is a breakout candle.

✤ Definition

☛ A breakout occurs when the priceof a stock, index, or asset moves above a key resistance level or trading range, signaling potential upward momentum.

✤ Characteristics

☛ The price moves beyond a previously established high (resistance level).

☛ It is often accompanied by high trading volume, which confirms the strength of the move.

✤ Implications:

☛ Indicates bullish sentiment and the potential for further price increase.

☛ Traders often enter buy position when a breakout is confirmed.

✤ Example:

☛ If a stock has been trading between ₹100 and ₹120, a breakout happens when the price rises above ₹120.