Why is BREAKOUT important? It is the initial signal of the ne | Daniel Education

Why is BREAKOUT important?

It is the initial signal of the next price direction. When a breakout occurs, the market is telling where the price is going to go after this.

But, keep in mind that a breakout is not a confirmation for the market to follow the breakout signal.

Several other things need to be taken into account as confirmation on to determine whether the breakout is valid or doesn't depend on the techniques used to analyze the market.

Can you BREAKOUT only with shadows or no?
The answer is NO.

Breakouts can occur by means of body candlestick close above the highest price before or the lowest price before.