Failed Breakouts
A failed breakout isn’t just a fakeout that didn’t work, it’s information about who controls the level, and traders who only see it as a missed trade are leaving the more useful signal on the table. Once you know how to read one, the failure itself becomes the setup rather than the disappointment. What separates a failed breakout from a plain fakeout Every failed breakout is a kind of fakeout, covered in more depth on the Breakouts and Fakeouts page, but the framing here is different. A fakeout is judged from the breakout trader’s side, did the break they took hold or not. A failed breakout is judged from the other side of the level, the side that defended it, and what that defence implies about the next move. ...