An Upside Breakout is considered a bullish signal, marking a breakout from a trading range to start a new uptrend.
An Upside Breakout occurs when the price of a financial instrument breaks out through the top of a trading range. This Technical Analysis indicates that prices will rise explosively over a period of days or weeks as an almost vertical uptrend appears.
The duration of the trading range for which the breakout occurred can provide an indication of the strength of the breakout. The longer the duration of the trading range the more significant the breakout.
The "narrowness" of the trading range can also be used to gauge the breakout. To determine the narrowness of the trading range compare the upper boundary with the lower boundary of the trading range. If the trading range has a small difference between the upper and lower boundary (making it narrow) then the breakout is considered stronger and more reliable.
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