#Make a difference Breakout System Horizontal breakouts are | Bull&Bear Signals

#Make a difference

Breakout System
Horizontal breakouts are among my favorite trading concepts and especially for new and struggling traders, spotting horizontal levels is usually much easier because they are very objective.

A good horizontal level is validated after the second touchpoint and with every subsequent touch, a level gets progressively weaker.

In the screenshot below, the horizontal resistance level at point (1) has around 5 touchpoints. Such a level has a high likelihood of breaking. Even more so, just before the breakout, the price was “sticking to the level” which means that the sellers were not able to push the price lower and the buyers came into the market more and more. In my trading, I call this concept a “lower bounce” and it often foreshadows a high probability breakout.

Once the price has broken out of the sideways range, a trader would wait for short consolidations that allow you to draw horizontal levels at the top. Points (2) and (3) are great examples here.