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Topic
Breakout
8 guides in Finabase Learn
- Breakouts and false breakouts: what the data says about each What a breakout is, why so many fail, and what volume and follow-through change, tested on 162 breakouts in 15 large US stocks and ETFs from 2025 to 2026.
- Cup and handle pattern: shape, buy point and how often it works How a cup with handle forms, the guidelines William O’Neil popularized for its depth, length and handle, where the breakout is, and what 31 real cups did next.
- Flags and pennants: trading the pause after a sharp move How bull and bear flags and pennants form after a steep pole, how to measure the target, and how 66 real flags on large US stocks actually performed.
- Head and shoulders pattern: neckline, target and reliability How to spot a head and shoulders top or inverse bottom, draw the neckline, project the measured-move target, and what real occurrences on US stocks did next.
- Rectangle chart pattern: trading ranges, breakouts and targets How to identify a rectangle (trading range), why it has no built-in direction, how to measure the breakout target, and real rectangles that broke up, down and failed.
- Rising and falling wedge patterns: how to read and trade them How to tell a rising wedge from a falling wedge and from a triangle or channel, where the breakout and target are, and real wedges that broke both ways.
- Triangle chart patterns: ascending, descending and symmetrical How to draw ascending, descending and symmetrical triangles, where the breakout and target are, and why real triangles often break the "wrong" way.
- Volume analysis: confirmation, climax volume and relative volume How to read trading volume on a chart: confirming trends and breakouts, climax volume, relative volume, and three real 2025 cases including one that failed.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.