THE DIFFERENCE BETWEEN REAL BREAKOUT AND FAKE BREAKOUT


At the first red line, we see a breakout action from the resistance trendline but without the confirmation of volume despite the very long and strong bullish candle. The volume here is quite low, lower than the previous ones.

On the contrary, the second red line shows price breakout once again to overcome resistance. This time, the bullish candle is very long, showing that the bulls are in control of the market, along with the confirmation of the huge volume, which shows that the buyers are very aggressively pushing the prices up. They have eliminated all sellers. So that successful breakout.

THE FORM OF REAL BREAKOUT


Once the breakout is considered successful it must be confirmed by volume. The important thing here is that volume must also breakout along with the price.

As shown in the picture above, when the price breakout goes up, then the volume also breaks out the low 45-day volume resistance.

EXAMPLE WITH BREAKOUT JAPANESE PRICE MODEL


We will practice a case study of two breakout cases, which one will profit, and which one will lose.

HOW TO TRADE THE TWO - HEAD - TWO SUCCESSFULLY?


For a long time, we have always talked about the role model - the head-shoulder pattern is the classic, divine, holy grail, ... But it is very difficult for traders to deal with it. Not because it's hard to detect, but we forgot the volume when analyzing price patterns.

The principle for a successful head and shoulders pattern is that the volume from left shoulder to right shoulder gradually decreases (higher high is fine, but the right shoulder has low volume), finally, the right neck breakout candle has extremely high volume.

CONTINUE WITH A TWO PROMOTION - TWO GOING


So what is the lesson today? All price models that we have analyzed for a long time have to attach the volume to know exactly whether the model will be successful or not. If you just look at the model without looking at the volume, it's like walking in the night without the phone flash.