Range breakout
Price leaves an area where buyers and sellers were balanced. The old boundary can become a new support or resistance level.
Educational example of a range breakout. Real charts are messier — the shape is the idea, not a template.
What confirms it
A decisive close outside the range and continued trading beyond the boundary.
Common trap
Treating a wick outside the range as a breakout. Wait for the candle close.
Read it in five checks
- 01Trend: Is the higher chart rising, falling or ranging?
- 02Location: Is the setup at real support, resistance or structure?
- 03Close: Did a full candle close beyond the trigger level?
- 04Invalidation: Where does the chart prove the idea wrong?
- 05Reward: Is there enough clear space before the next barrier?
A chart pattern describes price behaviour; it does not predict the next candle. Use it with a trend filter, a defined stop and a tested risk-reward rule. Educational examples only — not trading advice.
More breakout setups
Repeated highs meet rising lows. Buyers are becoming more aggressive beneath a fixed resistance level.
Full guide
Repeated lows meet falling highs. Sellers are pressing into a fixed support level.
Full guide
Lower highs and higher lows compress price. Energy is building, but the shape alone does not choose direction.
Full guide
Price briefly breaks a known level, traps breakout traders, then closes back inside the prior range.
Full guide