What is the trendline breakout pattern?
The trendline breakout is a bullish breakout pattern. Price closes above a descending trendline fitted to the recent highs, ending the run of lower highs.
How does the trendline breakout form?
Price closes above a trendline fitted to the recent highs, ending a run of lower highs.
How do you confirm a trendline breakout?
The break has to be a close, not a wick. A touch through the line proves nothing. The line is a best fit, so it deliberately does not pass exactly through every pivot.
When does the trendline breakout fail?
First breaks fail often. Price closes above, then falls back under within a bar or two, and the trendline holds after all.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the trendline breakout, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a trendline breakout. Where did price go next?
