📈 NOT ALL BREAKOUTS ARE WORTH CHASING



Most traders lose money not because their analysis is wrong...

But because they choose the breakout incorrectly.

There are 3 breakout signs with a high probability:

✅ Volume increases when the candle breaks through resistance, not decreases.

✅ A successful retest is maintained. Price comes back to test the breakout area and bounces, instead of immediately dropping again.

✅ The Higher High & Higher Low structure remains intact after the breakout. This indicates the trend truly changes, not just a brief momentary spike.

A perspective often overlooked

The more a resistance is tested without strong rejection, the more sell orders in that area start to run out.

Meaning:

First test → Sellers are still dominant.

Second test → Some supply gets absorbed.

Third or fourth test → Breakout opportunities usually increase if volume also supports it.

However, if each test comes with decreasing volume, the breakout is more likely to fail because buyers start to lose momentum.

Conclusion

Don’t buy just because price managed to break resistance.

Buy when market structure, volume, and retest provide confirmation that the breakout has a high probability of continuing.

Professional traders buy probabilities, not hopes. #education
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned