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Old 09-30-2006, 06:12 AM
carter carter is offline
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Re: False Breakouts, How To Predict Them?

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Is there no way to anticipate breakouts or false breakouts?

The broker dealer and financial sectors tend to lead the markets. Would looking at these sectors help anticipate a move in either direction? For example, if a stock is consolidating in a tight range and the broker dealer index breaks a key resistance, would this indicate this stock to breakout of the range?
Yes, they should be able to give you a heads up as they are leading sectors. I assume you are trading stocks. Perhaps you should take note of this and observe to see if it works? Also, I do think it depends on the stock you are trading. If you are trading a stock that moves inversley with the financial sector than it will probably not budge.

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