Examining the Breakout:
Every breakout trade includes a series of structural indicators which signify the various phases of the breakouts progress. In Regards to ROKU, a rising channel was recently broken through causing a massive surge in price valuation. In this analysis we examine these structural indicators so that you too can identify these occurrences and enhance the effectiveness and consistency of your future speculations. Each breakout structure consists of four elements:
(1) Macro Trend:
All charts inevitably form a trend as daily trading activity unfolds. In this instance, ROKU has formed a respected rising channel which displays significant tests along prevailing support and resistance areas. These areas form as traders/investors speculate different areas which they believe are favorable entries.
(2) Price Brace/Thrust:
A price thrust occurs when a security value has breached new highs, or surpassed an area of significant resistance. The price thrust represents evident bullish accumulation and demonstrates the willingness of investors to purchase the security at even higher prices. A price thrust is viable within ROKU.
(3) Pullback:
A pullback occurs typically directly following a significant price break. The pullback forms when traders collectively seek an entry position at the recently breached resistance line. Similarly, stop loss positions are routinely placed below this line leaving room for mistakes where new entry occurs.
(4) Symmetric Breakout Trend:
When traders speculate on a price pattern breakout trade, they will typically project a target price symmetric to the initial trend that formed the progressing price pattern. In this instance, ROKU traders pushed the price to the symmetric projection where skimming occurred.
Price Trend Patterns Identified:
Rising Channel
Bullish Cup and Handle
Rising Channel Breakout
Important note:
The breakout zone represents the area of volatility subsequently following ROKU's breakout trend. The security will likely pull-back or begin forming a consolidation.
Every breakout trade includes a series of structural indicators which signify the various phases of the breakouts progress. In Regards to ROKU, a rising channel was recently broken through causing a massive surge in price valuation. In this analysis we examine these structural indicators so that you too can identify these occurrences and enhance the effectiveness and consistency of your future speculations. Each breakout structure consists of four elements:
(1) Macro Trend:
All charts inevitably form a trend as daily trading activity unfolds. In this instance, ROKU has formed a respected rising channel which displays significant tests along prevailing support and resistance areas. These areas form as traders/investors speculate different areas which they believe are favorable entries.
(2) Price Brace/Thrust:
A price thrust occurs when a security value has breached new highs, or surpassed an area of significant resistance. The price thrust represents evident bullish accumulation and demonstrates the willingness of investors to purchase the security at even higher prices. A price thrust is viable within ROKU.
(3) Pullback:
A pullback occurs typically directly following a significant price break. The pullback forms when traders collectively seek an entry position at the recently breached resistance line. Similarly, stop loss positions are routinely placed below this line leaving room for mistakes where new entry occurs.
(4) Symmetric Breakout Trend:
When traders speculate on a price pattern breakout trade, they will typically project a target price symmetric to the initial trend that formed the progressing price pattern. In this instance, ROKU traders pushed the price to the symmetric projection where skimming occurred.
Price Trend Patterns Identified:
Rising Channel
Bullish Cup and Handle
Rising Channel Breakout
Important note:
The breakout zone represents the area of volatility subsequently following ROKU's breakout trend. The security will likely pull-back or begin forming a consolidation.