In order to trade breakout successfully, you need to remember our previous lessons. Remember all those chart pattern that we talked about a while back? If not, here, you can refresh your memory here.
So, how does that help us? Well, when the price gets close to a trend line there are two things that could happen:
The price could bounce off and go on with the trend.
The price could go through the trend line and cause a reversal.
How do you spot a breakout in their situation? Well, you are to use all of those technical indicators that we talked so much about. When there is a trend they are the ones that can help you determine whether breakout is going to happen or not.