Breaking through isn't the hard part; the difficult part is "pullback confirmation."

The chart shows four common pullback patterns. Understanding these is key to determining whether a breakout is genuine or just a false breakout followed by a pullback.

1. Support-Resistance Flip Pullback (Most straightforward)

After the price breaks above a previous high, a pullback to confirm that this level has shifted from resistance to support. This is the classic trend continuation logic, with clear entry points and well-defined stop-loss levels.

2. Trendline Breakout Pullback (Variant Head and Shoulders)

When the price breaks through a downward-sloping trendline, a pullback to this trendline that fails to fall further indicates that the bearish control has been broken, and the bulls are starting to take over.

3. Support-Resistance Flip in Range-Bound Zones (Highest success rate)

After multiple oscillations within a range, a breakout of the sideways structure followed by a pullback to the upper boundary that fails to fall further confirms the prior consolidation. This is a good signal to follow the new trend into an entry.

4. Converging Triangle Breakout Test (Most prone to losses)

In this pattern, volatility narrows as energy accumulates. After a breakout, a pullback to the triangle's edge is critical for assessing whether momentum will continue. If the price falls back inside the range, the pattern fails.

Overall, a breakout is not a signal; confirmation is the signal.

Breakout → Pullback → Hold → Momentum emerges — this is the complete logic for a successful breakout trade.