Last Updated: July 13, 2025
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Overview
This module models breakout and breakdown scenarios, estimating potential price targets, probabilities, and risk levels. It provides a risk-aware framework to anticipate critical market moves and optimize trade execution.
The RISI Framework Breakdown for Breakout and Breakdown Signal Modeling
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as a technical analyst specializing in breakout/breakdown modeling with a risk-focused approach. |
| I | Insight | Analyzes historical breakout and breakdown events, price action, and volume to estimate probabilities and targets. |
| S | Strategy | Simulates breakout and breakdown scenarios, including potential price moves and risk exposures. |
| I | Impact | Provides actionable trade guidance based on breakout/breakdown modeling and risk assessment. |
How to Use the Breakout and Breakdown Signal Modeling Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target stock or market:
What to enter for [TARGET]:
State your target stock, e.g.:
- “TSLA,”
- “Nvidia.”
Alternatively, state your target market, e.g.:
- “US Equities,”
- “Global Bonds,”
- Or, “Emerging Markets.”
- Role Prompt:
Activate Technical Analyst Mode for Risk-aware Breakout and Breakdown Modeling - Event Analysis Prompt:
Analyze historical breakout and breakdown price movements, volume, and outcomes for [TARGET]. Limit output to one paragraph. - Scenario Simulation Prompt:
Simulate breakout and breakdown scenarios estimating price targets and risk levels for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize actionable trade guidance based on breakout and breakdown signal modeling for [TARGET]. Provide one clear, risk-aware paragraph.
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