Fake v/s Real Breakout

What is a Breakout?

A breakout refers to when the price of a stock moves above a resistance area, or moves below a support area. Breakouts indicate the potential for the price to start trending in the breakout direction. For example, a breakout to the upside from a chart pattern could indicate the price will start trending higher.

How to Find Breakout?

The goal is to look for stocks with low volatility since low volatility can indicate an upcoming breakout. To find low volatile stocks, find stocks that are trading in range/sideways. You can use the Bollinger Band Indicator to find those stocks.

How to Confirm a Breakout?

Volume is a key indicator for identifying and confirming the Breakout.

One should always wait for a Retest.

Real Bullish Breakout


2. WIPRO- 1D Chart

3. GLENMARK- 1D Chart

4. TATAPOWER- 3Hr Chart

Fake Bullish Breakout

1. LUPIN- 1D Chart

2. CIPLA- 1D Chart

3. TCS- 1D Chart

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