How Do I Analyze Price Break Outs using Trend Lines?
How Do You Trade Price Break Outs using Trend Lines?
Trendline break outs are signals that can be used to trade reversal break-out signals.
The breakout setups commonly used to trade the market are:
The trend line break out is a reversal signal where the market goes through the trendline & starts moving in opposite direction.
Trendline Break Out Analysis
When an upwards trendline is broken then sentiment of the market reverses & becomes bearish
UpTrend Line Breakout
Trendline Break out Analysis
When a down-wards trendline is broken then the sentiment reverses & becomes bullish
DownTrend Line Breakout
NB: for very strong trends, after this trendline break out signal, the price will consolidate for some time before moving in opposite direction of the market trend. For short term trends then this trend line break out signal will mean price direction might reverse immediately.
How Do I Analyze Price Break Outs using Trend-Lines?
