How to Read a Failed Breakdown

A failed breakdown can reveal important information about selling pressure.

Imagine ES breaks below a well-established support level.

Sellers become aggressive, but price quickly recovers above the level and remains there.

This may suggest that the breakdown failed to attract sustained acceptance at lower prices.

However, one recovery candle isn't enough to establish a reliable trading setup.

I would examine the broader market context, the quality of the recovery, and whether the market provides a clear entry trigger.

If the price returns below support again, the bullish interpretation may no longer be valid.

The key isn't simply buying below support.

It's identifying when the market attempts to move lower but fails to sustain that move.