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Breakout or breakdown? How to identify and analyse these chart patterns

Volume needs to show significant improvement to impact the market sentiment

Topics
Chart Reading | technical analysis | Trading

Avdhut Bagkar  |  Mumbai 

Breakout and breakdown are two distinct aspects of technical analysis. Breakout means a bullish up move and breakdown suggests a negative (downside) move.

Both have their own significance in a trading setup, and hence, various strategies are developed to understand the breakout and breakdown patterns in the stock market. A breakout indicates an up move that conquers the resistance/ neckline/ selling pressure of assets. The prices surpass the pressure area with an increase in volumes and the strength that triggers a fresh move with sentiment building in favour of the upward ...

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First Published: Tue, June 01 2021. 09:00 IST
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