How to Identify Stock Indices Break-out Pattern

A range indices consolidation pattern is a range with narrow price action which forms a consolidation period in stock market. The indices range is defined by 2 parallel trend lines which are horizontal and these trend lines indicate the presence of support levels & resistance levels at this particular area. Range consolidation chart pattern is drawn on a chart using a range, therefore thus its name indices range chart pattern.

For this indices consolidation chart pattern, price forms a series of highs and lows that can be connected with horizontal trendlines which are parallel to each other. Range consolidation chart pattern forms over an extended period of time giving this chart pattern its range shape.

Flat Top Breakout Pattern - A breakout of price action from this range consolidation chart pattern occurs when either of the horizontal line is penetrated & the trading range of this range pattern setup is broken. An up side price break-out is a buy signal. A downside price break-out is a sell trade signal.

How to Trade Indices Breakouts - How to Identify Stock Indices Break-out Pattern - Indices Breakout Pattern Strategy

Price Breaks Out of the range consolidation pattern after a period of time and price continues to move upward after an upward price break-out.

How to Trade Indices Breakouts - How to Identify Stock Indices Break-out Pattern - Indices Breakout Pattern Strategy