How to Interpret Price Break Outs using Trend Lines
Indices Stock Trade Price Break Outs using Trend-Lines
Indices trendline break outs are signals that can be used to trade reversal break-out signals.
The indices breakout trading setups popularly used to trade the markets are:
The trendline break out is a reversal where the market goes through the trend-line and starts heading in in the opposite trend direction.
Upward Indices Trend Break Out Strategy
When an upwards trend-line is broken then the sentiment of the market reverses and becomes bearish
Up-wards Trendline Break out - Upwards Trendline Break out Indices Technical Analysis
Indices Down Trend Break Out Strategy
When a down-ward trend line is broken then sentiment reverses and becomes bullish
Stock Indices Down Trendline Break out - Downward Indices Trendline Break out Indices Technical Analysis
NB: for very strong trends, after this trend line break out trading signal, the price will consolidate for some time before heading in the direction in the opposite trend of the market trend. For short term trends then this trend line break out stock signal will mean price may reverse immediately.
How to Interpret Price Break Outs using Trendlines
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