Break and follow on trendline support_break

After breaking the trendline

Enter on the direction of the breakout with a follow-on trendline

This is similarly valid with horizontal support and resistance

In response to real market movements

We differentiate between horizontal support/resistance and angled support/resistance (trendlines)

Support/resistance market → breakout or breakdown is the basic strategy

Even if late, it can still catch the trend

This comes from the idea that it’s okay to be late when considering long-term timeframes

Why is horizontal support/resistance → breakout prone to failure?

Why is angled support/resistance → breakout more successful?

Simply, it’s influenced by the number of traders’ positions

In the case of horizontal support/resistance, if it breaks, placing a stop loss is easy, right?

Also, anyone trading can easily speculate that a trend might develop

Therefore, due to traders’ expectations, breakouts are prone to fail

Not that it fails outright

It’s that there aren’t enough positions to form a breakout→trend market

However, with angled support/resistance, it seems harder to cut losses

Also, since it’s a retracement within a situation where a trend had already been present

Many traders still expect the trend to continue

Since breakout can form a trend with the right amount of concepts and positions

As a result, breakout → trend formation occurs

Additionally, for a trend market → breakout → flag → re-trend

This is due to a large number of positions at the stage where traders “quickly reversed”

In other words, if you know the factors that cause a support/resistance market → breakout → trend formation

You can easily assume a market where this is possible, and your entry timing will align well

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