Bulkowski’s Breakout Day Volume

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Breakout day volume, when compared to the 30-day average, helps predict performance after the breakout. This page looks at the performance of chart patterns after heavy and light volume breakouts. For more information see the book Encyclopedia of Chart Patterns, Second Edition and the following...

Heavy volume

Light volume

No volume preference

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, postbreakout, when breakout day volume is above the 30-day average.

Chart Patterns in a bull market

Big W, down breakouts

Broadening formations, right-angled and ascending, up and down breakouts

Broadening formations, right-angled and descending, down breakouts

Broadening wedges, ascending, up and down breakouts

Broadening wedges, descending, up and down breakouts

Bump-and-run reversal bottoms

Diamond bottoms, down breakouts

Double bottoms, Adam & Adam

Double bottoms, Eve & Eve

Double tops, Adam & Adam

Double tops, Eve & Eve

Head-and-shoulders bottoms, complex

Head-and-shoulders tops

Head-and-shoulders tops, complex

Horn bottoms

Pennants, up and down breakouts

Pipe bottoms

Rectangle bottoms, up and down breakouts

Rectangle tops, up breakouts

Rounding bottoms

Rounding tops

Scallops, ascending, up and down breakouts

Scallops, ascending and inverted

Scallops, descending, up and down breakouts

Triangles, ascending, up breakouts

Triangles, descending, up and down breakouts

Triangles, symmetrical, up and down breakouts

Wedges, falling, up and down breakouts

Wedges, rising, up breakouts

Light Breakout Day Volume

Light breakout day volume is volume that tops out below the average volume over the prior month, and it occurs on the day price breaks out of a chart pattern. Look back 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, postbreakout, after breakout day volume that is below the 30-day average.

Chart Patterns in a bull market

Big W, up breakouts

Broadening bottoms, up breakouts

Broadening formations, right-angled and descending, up breakouts

Broadening tops, up breakouts

Cup with handle

Cup with handle, inverted

Diamond bottoms, up breakouts

Diamond tops, down breakouts

Double bottoms, Adam & Eve

Double bottoms, Eve & Adam

Double tops, Adam & Eve

Double tops, Eve & Adam

Flags, up breakouts

Flags, high and tight

Head-and-shoulders bottoms

Pipe tops

Three falling peaks

Three rising valleys

Triangles, ascending, down breakouts

Triple bottoms

Triple tops

No Volume Preference

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

Chart Patterns in a bull market

Broadening bottoms, down breakouts

Broadening tops, down breakouts

Bump-and-run reversal tops

Diamond tops, up breakouts

Flags, down breakouts

Horn tops

Rectangle tops, down breakouts

Scallops, descending and inverted

Wedges, rising, down breakouts