Chart Reading : Lesson - 4 (Part : 1)

Today, I will discuss regarding the Breakout. Before discussion, pls. see the Chart - 1 first :

After breaking the resistance, price went to up

When price breaks a Support or Resistance level, we usually call it Breakout. Breakout occurs with high volume and big movement.of price.

Some investors follow Breakout Trading Strategy/Technique i.e. they buy shares when price break the resistance level and sell share when price break the support level. Please check some previous chart and I hope you will find that several successful trend started after a breakout. A portion of my capital, I invest according to the Breakout Trading Strategy/Technique.

No trading system/technique is 100% accurate. So, you may sometimes caught by breakout, usually we call it - "Fakeout". Please see the below Chart -2 :

After breaking the resistance, price went to down

To overcome this problem, pls wait for the next lesson. Best of Luck!!!

Case Study : DSEGEN INDEX

Can we expect a pullback here? Time will say. Pls. see the chart :

(Pls. click on the image to enlarge)

Case Study : INTECH

Directors are getting punishment............

(Pls. click on the image to enlarge)

Case Study : RUPALIINS

Price is above the signal line that is also acting as a support line. Let's see what happen.....

(Pls. click on the image to enlarge)

Case Study : APEXFOODS

Still above the support line and closely watching this.... If it able to sustain, it may go up further......

(Pls. click on the image to enlarge)

Case Study : CITYBANK

Successfully able to break its resistance line that is now acting as a support line. Volume also looks good. Hope support line will able to sustain.

(Pls. click on the image to enlarge)

Case Study : GREENDELMF

Its last day volume has disappointed me. Except this one everything is looking good. Signal line is its support line.

(Pls. click on the image to enlarge)