just market behavior of supply and demand, buyers and sellers at work that somehow happens to cause price to come back to the trendline and make it bounce back up or down depending or what direction it was going initially. Other breakouts never look back and just keep going. The more times a stock price has touched these areas, the more valid these levels are and the more important they become. When a stock price breaks a resistance level, old resistance becomes new support. Credit: Source: eSignal, note that prices did not make it exactly back to the breakout level.
But you may still get a chance to trade the breakout if application suivre cours crypto monnaie prices return to re-test the breakout level. For example, if the range of a recent channel or price pattern is six points, that amount should be used as a price target to forward project once the stock breaks out (see Figure 3). breakouts occur in all types of market environments. This is an important consideration because it is an objective way to determine when a trade has failed and an easy way to determine where to set your stop-loss order. Draw a rising (upward) trendline when price breaks that trendline, you wait for the retest. From there price moved up but later it came back down to touch that trendline that was broken and then bounced up from there. That triple bottom held from the 1st touch at 2/18 till 3/02 thus demonstrating this bottom was a strong support while being the yearly low up till this point. For take profit target, use the previous swing high point or otherwise, aim for a 1:2 or more risk to reward.