Volume Breakout Validation Tool
Breakouts are powerful trading signals, but fake breakouts can trap traders and cause significant losses. Our AI-powered volume breakout analysis validates breakouts by confirming volume participation and trend alignment.
Intraday and swing traders use Trade Validator to confirm setups before entering the market. AI checks volume power, breakout strength, trend momentum, and risk score to avoid bad entries. Works for both NSE and US-listed stocks.
How Breakout + Volume Confirmation Works
A genuine breakout requires both price movement and volume confirmation:
- Price Breakout: Stock breaks above resistance or below support levels
- Volume Spike: Trading volume increases significantly during the breakout
- Breakout Candles: Strong bullish or bearish candles confirm the move
- Trend Confirmation: Overall trend aligns with breakout direction
- Sustained Volume: Volume remains elevated after the initial breakout
Fake Breakout Warning Signs
- Price breaks resistance but volume is low or declining
- Breakout candle shows weak momentum (small body, long wicks)
- Price immediately reverses after breakout
- No follow-through buying/selling after initial breakout
Advantage of Validating Breakouts Before Entering
Fake breakouts are one of the most common traps in trading. Entering a trade on a fake breakout can result in immediate losses as price reverses. Our validator analyzes:
- Volume Analysis: Compares current volume to average volume to detect genuine participation
- Candle Pattern: Analyzes breakout candle strength and momentum
- Historical Breakouts: Checks how the stock has behaved during previous breakouts
- Support/Resistance: Validates if breakout level is significant or weak
- Trend Alignment: Ensures breakout direction matches overall trend
Real-Time Volume Data
Our system uses real-time market data to analyze volume patterns. Get instant validation before entering breakout trades, avoiding fake moves that could trap your capital.