What is price-volume break out?

General
1

What is price- volume break out ?Is it advisable to go long in that particular script which break out was happened?

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Stocks usually get stuck in a range, and they can be in that range for a prolonged period. Sometime the stock attempts to break out of that range..and move either upwards or lower to the range. This is called a 'break out'

A break out is considered strong only if there are sufficient volumes associated with the price movement else it is considered a falseĀ breakout.

Here is a chart, that shows a price volume breakout...



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Karthik, thanks for answering so many queries diligently and intelligently.

4

In the above chart, would it be a breakout around March 24 and April 24 as well (though later proved to be a false breakout)?

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Thanks N.
You are right, on both dates there was a qualified breakout, however the 24th April breakout proved to be a false breakout.

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Thanks karthik

7

The volume candle that you marked. Isnā€™t it showing selling volumes?