Breakout or breakdown? How to identify and analyse these chart patterns

Volume needs to show significant improvement to impact the market sentiment

Breakout and breakdown are two distinct aspects of technical analysis. Breakout means a bullish up move and breakdown suggests a negative (downside) move. Both have their own significance in a trading setup, and hence, various strategies are developed to understand the breakout and breakdown patterns in the stock market.

 

A breakout indicates an up move that conquers the resistance/ neckline/ selling pressure of assets. The prices surpass the pressure area with an