Deeper look @ breakout setups.
Blindly selling Lows or buying Highs is a recipe for disaster in the long run.
But the right kind of buildup can legitimize a breakout (BO) entry. When a breakout failure (BOF) does NOT immediately make a strong move in the other direction, you've got to ask yourself -- has the power balance really shifted?
If not, it could just be another example of pressure building in the original BO direction.
** Also, take a look at the breakout entry at B (no buildup) vs D (buildup). Especially relevant for a coiling market like crude oil.
Blindly selling Lows or buying Highs is a recipe for disaster in the long run.
But the right kind of buildup can legitimize a breakout (BO) entry. When a breakout failure (BOF) does NOT immediately make a strong move in the other direction, you've got to ask yourself -- has the power balance really shifted?
If not, it could just be another example of pressure building in the original BO direction.
** Also, take a look at the breakout entry at B (no buildup) vs D (buildup). Especially relevant for a coiling market like crude oil.