I have few queries.
1. If the candle's open is below the trendline and closed above the trend line, is it ok to call this a breakout? I thought open and close both should be above the trendline.
2. How to identify whether this is a false breakout or not? Will the market provide any indications or signals?
3. Ho do you calculate the Target?
There is no way to identify the false breakout, some used refer Volume, RSI etc etc. But i dont believe in them. I'm an early bird in any stock. I just exit with stoploss if it is failed breakout. Nobody is going to put us in jail if we take a false breakout stock. It is just breakout failure thats it in that case :)
Targets i basically see next important swing high or resistances or supply zone. I use Fibonocci levels at times. But trading style is very simple, i dont know much about technicals except supply and demands.