Failed Breakouts in NQ

My approach to studying failed breakouts in NQ

A failed breakout happens when price moves beyond an important level but cannot sustain that move.

For example, NQ breaks above the previous session high, attracts breakout buyers, and then returns below the level.

Rather than immediately entering short, I would study:

• Whether price can hold above the breakout level.

• Whether aggressive buying produces further progress.

• Whether price returns below the level.

• Whether a short entry has a clear invalidation point.

The idea is to trade evidence of failure, not the mere fact that price touched a previous high.

Some breakouts fail. Others become powerful continuation moves. The job is to distinguish between them as objectively as possible.