Here I come with another educational post. This time I will try to explain the breakout failure pattern along with the psychology and manipulation behind them.
For the sake of simplicity, I am taking examples of historical support and resistance levels. I will only explain the breakout failure pattern assuming that the breakdown pattern will be read upside...
Sharing with you one of my favorite BO failure pattern.
What is this pattern?
It can be called as a topped out or bottomed out pattern. Which does not mean at all that the stock would start a major correction from this failure but only hints dying buyer interest. Many a times the stock see sharper pullbacks due to exits of the late bulls trapped in the BO...
All of us want the price action to follow our direction of trade but that doesn't happen always. The price action has a natural tendency to move up and down; build ranges and develop patterns. Most of the ranges and patterns are like whipsaws and many traders stuck in these situations and lose money. The most effective ways to deal with such a...
Thanks for your response to my last post in which we discussed what happens after a breakout.
In this post we will discuss better ways to anticipate a breakout.
Although the types discussed are ideal that doesn't mean they are not possible in real time. That's why I have been posting some examples.
However, anticipating a breakout does not mean that...