1. Ascending, Descending and Symmetrical triangle
2. Channel Consolidation Pattern
5. Support (Demand) and Resistance (Supply) Breakout
6. Moving Average Breakout
So, what makes Breakouts a low risk setup?
Usually when such breakout happens, a ratio can be achieved, because usually in such cases, Stop Loss is kept just few points above/below the support line/ . Please note: Stop Loss should not be very tight and there shall be some leverage in case the stock retraces back.
What Can be learnt from this structure?
- Stock Under Consolidation taking Support from the
- Closing below the Trendline
- 50 broken and closing below that
Stock might retrace back to the and resist the same and then make a fresh fall. To confirm the entry, another continuation candle or a candle near the entry would be the best possible scenario.