#MULTIYEAR #BREAKOUTS #STUDY with examples
But first some key points
There is no Definition of Multiyear breakouts. But if the stock breaks out of its range or any other pattern after 5+ years then it can be considered as multiyear breakout.
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Usually this kind of breakout happens due to tailwinds in some sector or due to the disruption in the sector.
For eg: last year due to covid-19, Pharma sector co’s created huge wealth for their investors.
Also look at the IT sector specifically those involved in data related business or AI or ML or any high tech apps, this sector is also getting hot, along with API’s, chemicals and energy sector for next wave of disruption.
So it all depends on the turnaround happening the company or the sector that can cause a multiyear breakout considering various other factors also.
Patterns to watch out for:
One can watch out for below patterns in stocks for multiyear breakout. These patterns are recurring and fractal in nature
1. Rectangle / DARVAX BOX
2. Ascending Triangle
3. CUP & HANDLE formation
4. Series of HH-HL (higher high and higher low)