Many people will consider breakout for day trading only but one can use it for Positional/Swing Trading as well, But Before that we should know what is breakout means and how one can recognize a fake breakout.
What is Breakout..?
Breakout means stock price sustaining above Strong Resistance and level generally breakouts considered as bullish signal.
What is Fake breakout…?
Many a time it happens that it looks like stock price sustaining above resistance but in reality it many not sustain after some time period we may see price declining this is called Fake breakout.
How to recognize breakout and fake breakout…?
Volume is the key to identify the break out fake breakout, Breakout with rise in volume Indicates higher probability of bullishness and little change in volume of declining volume indicate fake breakout.
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