Short term breakout?

[Chart Buster]

I have been reading online about something called a short term breakout.
Specifically ones with higher than average volume and a breakout pattern?
Any one care to help me out on this one and explain what I am trying to look for?

TIA

[alexchartfilter]

>I have been reading online about something called a short term breakout.
>Specifically ones with higher than average volume and a breakout pattern?
>Any one care to help me out on this one and explain what I am trying to look for?


Hi CB,

First, a break out is defined as the following

A breakout is where the price breaks out either above or below a stable established range or trendline. Once the price breaks above its resistance or below its support, its likely to continue in the same direction.

According to Dow Theory, larger than average volume is used to help confirm a breakout. Price breakouts without larger than average volume can be discounted as a correction rather than a new trend. In summary a breakout pattern requires higher than average volume.

Here is some reference material for trendlines, support & resistance, as well as another description/example for breakouts which should help point you in the right direction.

Let me know if this helps

Alex

[Eric115]

So what is considered short term? Days, weeks, months?

[alexchartfilter]

>So what is considered short term? Days, weeks, months?

Trends are typically broken up into three groups,



Short term trend -- always the current trend. It may not necessarily be in the same direction as the mid or longterm trend.

Medium term trend -- a trend that occurs over weeks to 2 or 3 months. All big moves must start with a short term thrust building to a medium term trend.

Long term trend -- a trend over three months is considered a long term trend. Long term trends show stability.

Any trend which has continued unbroken for over 3 months is considered to be a long term trend, and of some significance. This is the trend to trade with in the majority of cases. It can be thought of as the driving force behind the price and, until a fundamental change occurs in the marketplace, it will continue to do so.

Alex

[Eric115]

Originally Posted by alexchartfilter

>So what is considered short term? Days, weeks, months?

Trends are typically broken up into three groups,



Short term trend -- always the current trend. It may not necessarily be in the same direction as the mid or longterm trend.

Medium term trend -- a trend that occurs over weeks to 2 or 3 months. All big moves must start with a short term thrust building to a medium term trend.

Long term trend -- a trend over three months is considered a long term trend. Long term trends show stability.

Any trend which has continued unbroken for over 3 months is considered to be a long term trend, and of some significance. This is the trend to trade with in the majority of cases. It can be thought of as the driving force behind the price and, until a fundamental change occurs in the marketplace, it will continue to do so.

Alex

Awesome! Thx Alex