Price escapes a well-defined consolidation with momentum. The longer and tighter the range, the more energy the breakout tends to carry.
How to identify it
- Clearly defined range with multiple touches
- Volatility contracts before the break
- Breakout candle closes beyond the boundary with range expansion
Entry
Enter on the breakout close or a retest of the broken edge.
Stop loss
Back inside the range beyond the last swing.
Target
Range height projected from the breakout.
Invalidation
Price closes back inside the range.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your range breakout trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.