What Is a Failed Breakout in Order Flow?
A breakout is not successful simply because price moves beyond a previous high or low.
Watch what happens after the breakout:
- Does aggressive buying continue?
- Does price hold above the breakout level?
- Does volume support the move?
- Does price quickly return inside the range?
A breakout that fails to attract continued participation may trap traders who entered late.
The real information often comes after the breakout, not during it.
Do you wait for acceptance before trading a breakout?
