false breakouts occur for a number of reasons but there's always winners and there's always losers. The big guys have the advantage here as they can see the order books for the retail and the big guys. If there is a big sell order 20 pips above resistance it is worth their while taking price up 10 pips and then selling to all the stops that get triggered from 10 to 20 pips up. Some of those stops are people entering trades, some are exiting trades. The next logical thing to do is take price back to where the stops are for the people who just opened a trade. They can afford to do this from the profit they just made.
Even real breakouts almost always retrace. When you see resistance become support then it might be worth opening a position.
steve
Even real breakouts almost always retrace. When you see resistance become support then it might be worth opening a position.
steve
Don't kill your dreams - execute them.