The purpose of the article is to show readers some companies that could potentially breakout a resistance shortly.
Unlike the other articles that is published here on BullDude.com which refers to companies that have already breakout a resistance, this article shows some companies that have a chart configuration that increases the probability to breakout the next resistance and continue the positive trend.
By anticipating entry, the potential gain may be greater, but the potential risk is higher.
Inside the chart there is a black half-line (with relative price) which represents the first resistance where the breakout can occur and continue growing.
How do I know if it’s a false potential breakout?
The potential breakout is defined as “false” when the positive trend that supported the price growth reverses the direction (going from positive to negative). To understand when this event occurs, there is a red half-line in the chart that indicates the level below which the positive trend can be considered concluded.
A few negative days are not enough to call it a “false” potential breakout because often the cause is natural temporary volatility (given by the retest of the signal level or profit taking or general market crash).
The information in this article is for informational purposes only and does not constitute investment advice.
Don’t miss an update, join the…
*Charts by tradingview.com
Click here to discover the other Chart Patterns published on BullDude.com
If you liked the article, share it on Facebook or Twitter !!!