My understanding of breakout was based on the info given in the site. http://www.investopedia.com/articles/trading/08/trading-breakouts.asp.
Ivory (5175)
Support horizontal line was formed at RM0.725 as the price moved higher and soon after two long black candlesticks were formed. Support was breached.
On the next day, there was a price breakout at RM0.725, giving an opportunity to initiate a buy. But, it was always better to have a confirmation. 4 days later, price went back to support line.
Another breakout was seen on the next day, a good time to buy, which I did at RM0.725. Selling price should be at the resistance of RM0.75. Cut loss at RM0.70, giving a risk reward ratio of 1:1.
The price did go higher than the anticipated level and went back to support line days later, followed by another buying opportunity the next day.
But as soon as the Three Black Crow candlesticks was formed, it's the end of the trading of Ivory, for the moment.
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