breakout

By the term breakout indicates rupture (precisely the breakout) of a certain level on the part of a currency pair.

There are two types of breakout:

     Breakout Continuation
     Breakout Reversal

In the first case, after a phase of sideways market the currency pair starts to move according to the initial trend, breaking the range of prices of the consolidation phase, it is called thus breakout continuation.

In the case of a breakout of inversion, instead, after the consolidation of prices, the currency pair is moving again, breaking the range of prices and traveling in the opposite direction to the initial one.

     Example breakout continuation

false breakout

First, it is worth pointing out that the breakout phenomena are never so distinct and clear, but sometimes it can happen that the price of a return to break a certain level (this is the support or resistance) but then continues in the expected direction: in this is called therefore false breakout.

     Example of a false breakout