Clean Break - Trading Glossary

This is a term to describe the age of a trend. If there is a break out of balance, a clean break is considered to be a successful breakout where there is a strong elongated bar forming. By observing the success/failure of the breakout (elongated/compressed bar) we can get a feel for age of the trend. When areas of balance overlap this is a sign of a trend maturing and coming to a possible end. The distance between each balance area is the measure of the success or failure of a trend; if there is a large gap between balance areas this shows a strong trend and smaller or overlapping balance areas are a sign of the end of a trend and possibility of a reversal.

Clean Break:

Not Clean Break:

This is a trading glossary term series of blog posts. You can take a look at all the terms we post with the Trading Glossary label.