As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%	Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

As of 12/20/2024   Indus: 42,840 +498.02 +1.2%     Trans: 15,892 +32.54 +0.2%     Utils: 986 +14.76 +1.5%     Nasdaq: 19,573 +199.83 +1.0%     S&P 500: 5,931 +63.77 +1.1%	YTD  +13.7%   0.0%    +11.9%    +30.4%    +24.3%
Targets    Overview: 12/12/2024     44,200 or 41,750 by 01/01/2025   16,100 or 17,700 by 01/01/2025   1,050 or 975 by 01/01/2025   20,500 or 19,300 by 01/01/2025   6,100 or 5,775 by 01/01/2025
Chart Pattern Indicator: on 12/5/24

Bulkowski on Breakout Day Volume

Updated with new performance 9/18/2020.

Breakout Day Volume: Summary

Breakout day volume, when compared to the 30-day average, helps predict performance after the breakout. This article discusses the performance of chart patterns after heavy and light volume breakouts.

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My book, Encyclopedia of Chart Patterns Second Edition pictured on the left, takes an in-depth look at 63 chart and event patterns, including performance statistics.

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The following apply only to bull markets.

Heavy Breakout Day Volume

Heavy breakout day volume is characterized by a volume spike that towers above the preceding month's worth of volume (see the figure to the right). Most times you can visually spot what the average volume will look like and compare it to the breakout day volume. Breakout day volume that is above average is heavy volume.

Here are the chart patterns in which price performs better, post breakout, when breakout day volume is above the 30-day average.

This is for chart patterns with downward breakouts

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Light Breakout Day Volume

Light breakout day volume (reference the figure to the right) is volume that remains below the average volume over the prior month, and it occurs on the day price breaks out of a chart pattern. Look to the left on the volume chart and compare the average volume with the volume level on the chart pattern breakout day. Light breakout day volume will appear as a short spike below the surrounding volume spikes and below the average volume level.

Here are the chart patterns that perform better, post breakout, after breakout day volume that is below the 30-day average.

This is for chart patterns with downward breakouts

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Breakout Day Volume: No Volume Preference

The following patterns show no performance improvement when sorted by heavy or light breakout day volume.

This is for chart patterns with downward breakouts

-- Thomas Bulkowski

See Also

• Volume. The definitive guide to volume preceding the breakout.
• Performance quickie. Does a rising volume trend within the chart pattern result in the best performance?
• Volume shape quickie. What is the best performing volume shape?
• Breakout volume quickie. Does heavy breakout day volume mean better performance?
• Volume shapes. Which chart patterns have what volume shape?
• Volume trends. Which chart patterns show improving performance depending on volume's trend?

A billion here, a billion there, and soon you're talking real money.