Key Indicators of a Strong Bear Breakout

Flashcards covering key vocabulary related to strong bear breakout indicators.

Large Bear Trend Bar

A big body with small or no tails that increases the success of a breakout.

High Volume

Volume that is 10–20 times the average of recent bars, boosting chances of further movement.

Significant Spike

An extended spike that breaks key support levels, lasting several bars.

Urgency During Formation

The breakout bar remains near its low with minimal pullbacks, less than 25% of its height.

Strong Follow-Through Bars

Subsequent bars that show bear bodies and continuation strength, even with small tails.

Micro Gaps

Successive bars creating gaps, such as opening below or closing above prior bars.

Closes at Lows

Bars that close on or near their lows, reinforcing downward momentum.

Multiple Bear Bars Without Pullbacks

A spike that grows to 5–10 bars before any significant pullback.

Supportive Context

The breakout aligns with a resuming trend or a strong test of previous highs.

Prior Bearish Days

Recent strong bear days that increase the likelihood of a breakout.

Bearish Trading Range Pressure

Bear trend bars dominating over bull trend bars within the trading range.

Delayed Pullback

The first pullback occurs only after 3 or more breakout bars.

Small, Brief Pullback

A pullback lasting 1–2 bars that lacks strong bull reversal characteristics.

Pullback Doesn’t Retest Breakout

A pullback that stays below the breakout point and avoids breakeven stops.

Wide Range Reversal

A breakout that reverses multiple recent bars' closes and lows, indicating stronger signals.