Rejections and Failures
Rejections and failures of price breakouts are very important for alert traders as these set up very good trading opportunities in the opposite direction. So it pays to keep an eye on such breakout 'breakdown failures particularly if they come after sustained move earlier and when the market is near important support/ resistance levels.
Catching these reversals is extremely profitable as the traders trapped because of failed breakout/breakdown come to our help when they get out of their loosing positions in desparation and thereby lending us a helpful hand.....
Posted above is a Nifty Futures 5 min chart showing 3 breakout failures and 1 breakdown failure in last 2-3 days ,marked on the chart. These have caught the swing reversal points with great precision, and hence it pays to listen when the failures speak loud and clear.....and these are the kind of failures which will make alert traders successful ....
Smart_trade
Rejections and failures of price breakouts are very important for alert traders as these set up very good trading opportunities in the opposite direction. So it pays to keep an eye on such breakout 'breakdown failures particularly if they come after sustained move earlier and when the market is near important support/ resistance levels.
Catching these reversals is extremely profitable as the traders trapped because of failed breakout/breakdown come to our help when they get out of their loosing positions in desparation and thereby lending us a helpful hand.....
Posted above is a Nifty Futures 5 min chart showing 3 breakout failures and 1 breakdown failure in last 2-3 days ,marked on the chart. These have caught the swing reversal points with great precision, and hence it pays to listen when the failures speak loud and clear.....and these are the kind of failures which will make alert traders successful ....
Smart_trade