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Objectively a breakout fails if I have an entry signal and it hits the corresponding stops.
It may then be followed by another breakout which may or may not fail.
A breakout succeeds if I exit with a profit.
This is a traders answer not an analysts answer. Every trade is a combination of risk and reward. |
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This is good. Makes sense.
Most breakouts will only retrace 40 to 50% of the initial move, if they retrace at all. Other will form a high tight flag just above the breakout, and then move fast. Volume needs to expand slightly to confirm the breakout. It also pays to know where major support and resistance is before hand... gaps that have never been tested have a high odds of stopping breakouts.
Good stuff. thanks.