|
Re: False Breakouts, How To Predict Them?
I tend to keep a close eye on trade volumes, as there needs to be a big push to breakout, and if there is no volume behind it, will it stick?
Sometimes a "false" breakout can be the first part of a proper breakout. I have seen many situations where stocks have hit highs then drifted back, but after a little consolidation, they have had another go at the breakout point, and passed through.
There is no real set pattern , and it probably comes down to gut feeling and experience.
|