Module 3 — Price behaviour
Breakouts and failed breakouts
6 minute read
In plain English
A breakout is price moving through a level. A failed breakout is price moving through and then immediately reversing back.
Why it matters
Failed breakouts are extremely common. Expecting them keeps your risk plan honest.
Example
Price clears $3.00 on strong volume, runs to $3.12, then closes back at $2.92 within ten minutes.
Try this
In Market Replay, study the failed pulses, not just the ones that continued.
Common mistake
Only studying the breakouts that worked.
What this does not mean
A breakout on high volume still fails regularly.
Educational content only. Not financial advice.