Breakouts and failed breakouts
A close beyond a level, and what happens next. · 6 min
Charts in this lesson are generated. They are not real market data and predict nothing.
A breakout is a close beyond a level. A failed breakout closes beyond it and then back inside within a few candles. You only know which one it was afterwards.
Price just closed above resistance. Will it hold higher over the next candles?
Plan it before it happens
A breakout entry has a natural stop: back inside the range, below the level. The distance from entry to that stop is your 1R (Track B). Failed breakouts are why that stop exists.
Resistance 50.00. A candle trades to 50.40 and closes at 49.90. What happened?
Simulator round · Find the levels a breakout would need
Generated chart. It is not real market data and predicts nothing.
Tap the chart at a price to draw a level. Tap a level again to remove it.