[pipsaholic]

The breakout has to be a momentum bar stabbing right through it plus a 2-3 candle pullback and take it wait for the close also to be extra safe never enter on the first breakout.

[phantom]

"The breakout has to be a momentum bar stabbing right through it plus a 2-3 candle pullback and take it wait for the close also to be extra safe never enter on the first breakout."

Say what?

[Handlowiec]

This is not a prediction, but a wonderful insight from Schabacker on false breakouts.

He discussed trading (for example) breakouts in a triangle and then a false breakout (he calls "out of line movement) will give the trader insight into the direction of the true breakout.

The key is this, if you got whipped on the out of line movement, then you got an idea that the stock will break out in the direction ouf the out of line, and then the next entry may be the correct one.

"To the trader who did not act prematurely, however, the one-day out-of-line gave valuable information. It suggested, first, that the pattern of price trend would be up, in the direction of the out-of-line movement." - Richard Schabacker

[pipsaholic]

Through my analysis of charts I can see a lot of false breakouts usually its 1 and then price rallies up and does a true breakout of the symetrical triangles usually. There are so many systems designed up trading a false breakout some traders view them as not false but a springboard to a rally coming up.