In forex how can I identity market breakout
There are break-outs and there are break-outs. Maybe the simplest was defined by Richard Donchian. It is when price goes higher than it has been for the last 20 days.
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By definition a market break out is when market break through a previous resistance and the candle close above it. therefore the previous resistance should be reconsiderated to be a support
an image worst more than 1000 words, here you have a breakout about to happen on AUDUSD , if a green candle can close above the “INITIAL RES” therefore its a breakout
then if you want to know what is a breakdown, its the contrary : when a red candle break through an initial support and close below therefore it become resistance
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look , now the break out happened and i entered long (should have done it a little sooner but thats ok to enter where i entered)
price formed candle breaking the resistance, then came back to retest it (even if it penetrated it a little its ok, should have entered sooner but my position was based on other complementary strategy so i found a good entry). then after retest come the rally 
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Firstly there has to be a market trading in a range so a lot of sideways movement then you need it to break past the highest or lowest candle in that range and to be sure best to wait for a retest before being sure its actually been broken
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Breakout in the market structure is one of the most important concepts in technical analysis. It showed that something happened to change the market’s sentiment toward security. Or we can say, a breakout implies that a trend is over, at least in its present form. After a breakout, the price can go up, down, or sideways. The best breakouts are accompanied by huge increases in volatility. The price bar that breaks outs should have a very wide range.
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When the price goes a little bit higher than what it has been in the past few days, you’ll know a breakout is around the corner.
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