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Price has broken out of its recent channel with structural confirmation. Volume confirms participation and ADX shows directional strength. The move beyond the channel has multi-framework backing.
State
Price channel breakout
Emergence
Price breaking out of its channel with volume and directional confirmation. When a price channel breakout is detected, volume confirms participation, and ADX shows directional strength, the move beyond the channel has structural backing.
Limits
This story identifies a breakout from a defined range, not continuation prediction. It does not claim the breakout will sustain, predict magnitude, or guarantee follow-through. Channel breakouts fail regularly.
Explanation
Each signal represents an independent observation: Price Channel Breakout detects when price moves beyond its established trading channel. This is a structural pattern of range expansion. Volume Breakout confirms the move is accompanied by elevated trading volume. Participation distinguishes genuine breakouts from noise. ADX Trend Strength measures directional conviction. Strong ADX during a breakout indicates the market is trending, not making a false move. When all three align, they describe a confirmed channel breakout.
Interpretation
This story identifies a breakout pattern, not continuation guarantee. It does not predict how far the move extends, guarantee direction, or indicate timing. Channel breakouts can fail and price can return to the channel.
Required Signals
Price Channel Breakout
Percentage displacement of price beyond high-low channel boundaries