Thread by @siddharth_2410

In this market environment, I think we all are encountering one simple problem. Breakouts are fizzling out so don't you think that we should have at least one method by which we can handle such fizzled breakouts and trade in the opposite direction

So let's take a deep dive

We all know that from failed moves come faster moves but the problem here is we just see the same happening on screen and are not able to capitalize on the same. See the below-attached image for few seconds I think you will get the tone of further discussion

If you have observed carefully you must have understood that these encircled regions are the 'FAILED BREAKOUTS'. Now you can take out your charts and find out such failed breakouts you will observe that when the price moves out of range

Cont..

And again comes back into range it normally has a tendency to move towards the lower / upper band of range as the case may be.

TRY THIS by opening your charts now and tell me the accuracy.
PS: It will work better in those situations when MARKET finding it hard to TREND

Actually, the concept that I putting forward is nothing but a very famous MARKET PROFILE nuance referred to as 'LOOK ABOVE BALANCE AND FAIL' or 'LOOK BELOW BALANCE AND FAIL'

Search👆you will get many articles on the same

The background scene in such movement is when the price is breaking out of consolidation and trying to catch a trend there will be many who will try to board the train and then there will be big hands who will try to fade the move
Cont..

Now when the price fails to trend higher or lower then these traders who boarded the train will start cutting their positions and also there is pressure from big hands from the upper / lower end. As a result of which prices will move in the opposite direction

If you have gone through my timeline you must have seen a screenshot of the RELIANCE trade. Now observe the RELIANCE chart you will find out that the same has happened

Cont..

Sounds easy right but it's not, if you will try to do this with every such move then you will lose more often. So instead of going BLIND SHORT or LONG just follow these👇
1. Wait for the price to come back to range and face rejection
2. Short on the break of intermediate support

3. Long on the break of the intermediate resistance
4. If you use some MOVING AVERAGE or VWAP or any other indicator then take confirmation from the same and develop your trade
5. Make sure that you are selecting those stocks which have a clean path below or above it

If you found this interesting then feel free to TAG😁, LIKE👍, RT♻

READ - OBSERVE - IMPLEMENT

@ST_PYI
Sir how you deal with such fizzled breakouts?